ARTISANAL AND SMALL-SCALE GOLD MINES IN BURKINA FASO ...

F = PrD/PrR = PrD/[(Rtτ1 × Efτ1 × T1 × TRC1) +… …+ (RtτN × EfτN × TN × TRCN)]
F: Fraudulent part of production (%)
PrD: Declared gold production (g/d)
PrR: Real gold production (g/d)
Rtτ1…. RtτN: Average productivity for a task of processing cycles 1… to N (t/h/d)
Efτ1…. EfτN: Manpower for a task of processing cycles 1… to N (h)
T1…. TN: Grades of ore or waste at the start of processing cycles 1… to N (g/t Au)
TRC1…. TRCN: Gold-recovery rate for processing cycles 1 to N (%)
Our studies on five reference sites show that the official purchasing channels (CBMP or private) rarely
collect more than 20% of the gold produced on a site. In 2002, because of insufficient human or material
means, the CBMP estimated to be incapable of recovering more than 3 to 5% of the production in some
districts, such as Bagassi (near Boromo) and Kampti in Lobi country. Based on these data, the fraudulent
part of gold production in Burkina Faso is estimated to be close to 90%. For an official artisanal production
of 250 kg/year, the real production would thus be between 2 and 2.5 tons/year. This clandestine gold
represents a loss of earnings of about CFA 100 million/year (€ 0.15 million/year).
for the State and the provinces, through the Artisanal Gold Mining tax alone. The full loss of income,
counting all taxes, for the State probably exceeds CFA 1 billion/year (€ 1.5 million/year).
Experience has shown that the systematic control of gold-producing sites is an expensive and not always
efficient proposition for the authorities. To be effective, it should be accompanied by a reduction in the
difference between official and unofficial gold prices. This reduction in the mark-ups of middlemen
(officially appointed collectors and purchasing centres) should then be largely compensated by an increase
in the volume of transactions.
MAJOR SOCIAL AND MICRO-ECONOMIC IMPACT
A few figures will suffice for making a concrete evaluation of the local economic and social impact of
artisanal gold mining. For instance, each day at Alga (April 2002 figures):
- 17 tons of ore are mined and processed to produce 420 grams of raw gold.
- 1,750 miners and labourers work for an average salary of CFA 1,225/day (€ 1,85/day), including 700
women who work for an average salary of CFA 640/day (€ 0,98/day).
- CFA 2 million (€ 3,055) are distributed within a radius of about 40 km around the site, or about CFA
25/day/inhabitant (total population).
By simply extrapolating the probably real gold production figures of the country (i.e. 2 to 2.5 tons of
gold per year), it is not unreasonable to assume that, in past years, during each season of artisanal gold
mining in the Burkina countryside, close to CFA 10 billion (€ 15 millions) was injected into the local
economy, in addition to regular agricultural income. In the country, an average of 64% of the total wealth
generated by artisanal gold mining is directly redistributed to local “pit-side” producers. Gold is thus a
relatively “fair” (sensu “fair trade”) commodity for the artisans when compared to gemstones. This is
partly explained by the moderate operating costs and mark-ups of commercial channels (collectors and
purchasing centres).
A rush of opportunistic shopkeepers generally follows close upon the heels of that of the gold miners.
All is thus ready on the larger sites to catch the artisan’s money: cold beer, video shows, “escort girls”,
watches and cassette players. In 2002, at Nagrigré (the first rush of Zoundwéogo Province), only three
months after the discovery of the vein, almost 500 —mostly regional— shopkeepers were pressing around
the 2,000 artisan gold miners of the site, or one shopkeeper for four producers. At the same time, the rest of
Gomboussougou Province was faced with a severe shortage of basic services, such as smiths, millers,
cooks, butchers and transporters.
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