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Burkina Faso buys 200 kilos of gold from local mine

Burkina Faso buys 200 kilos of gold from local mine
Bars of gold are piled up during a press conference at the German Federal Bank in Frankfurt am Main, western Germany, on January 16, 2013   -  
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Burkina Faso

Burkina Faso has acquired 200 kilos of gold from Canadian miner Endeavor, the country's energy and mines ministry announced Tuesday.

In a statement, the ministry said the decision to buy gold produced from the Mana mine was made in public interest, and that the company would be fully compensated.

"The decision to requisition gold is dictated by an exceptional context of public necessity, which requires the state to ask certain mining companies to sell part of their gold production," said a statement by government spokesman Jean-Emmanuel Ouedraogo.

Gold is a universal means of purchasing foreign currency to shore up reserves. 

Burkina Faso's finances have been hit hard by sanctions prompted by two army takeovers last year, and the fight against a militant insurgency in the north and east of the country.

Endeavor which is headquartered in the UK is the biggest gold miner in the Sahel country. 

Burkinabe authorities said that the transaction was exceptional and temporary, adding that it had been done in compliance with rules governing the trade in gold.

On Wednesday evening, the government wished to "reassure investors and all other partners of Burkina Faso". 

In operation since March 2008, the Mana gold mine produced 6.04 tons of gold in 2022, according to official figures.

It is owned by Endeavor Mining, which merged in 2020 with Canada's Semafo to form one of the largest gold producers in West Africa.

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