One of the world's poorest nations could have the next gold rush

One of the world's poorest nations could have the next gold rush
Wednesday, June 30, 2010
Gold mining could bring a measure of prosperity.
- By Bruce Sands
Burkina Faso says that its gold exports will rise more than 60 percent over the course of the next year, reports Bloomberg. The West African nation is also one of the world's poorest, with a per-capita annual income of less than $300. The last figure for unemployment, in 2004, put it at 77 percent.

Currently, Burkina Faso does not export an enormous amount of gold. But it's seeking to attract major mining corporations like Newmont Mining Corporation of the U.S. and Vale SA of Brazil.

IAMGOLD of Canada started up a mine this week in Essakane, Burkina Faso, that it projects will produce 500,000 ounces of gold by the end of next year.

The country expects its revenue from gold mining taxes to rise from #30 million last year to over $150 million in five years, according to Abdoulaye Abdoulkader Cisse, the mining and energy minister interviewed by Bloomberg. Cisse says that 800 companies sought exploration licenses in December, over twice the number the government projected.

All these trends point to a promising future for Burkina Faso in gold mining, which could finally begin to rise from the bottom of the economic heap. ADNFCR-2970-ID-19867520-ADNFCR