Russian gold mining company Nordgold eyes investment opportunities in West Africa

This comes as the firm solidifies its presence in the region with the recent acquisition of a key gold project in Burkina Faso, a move that underscores deepening economic ties between the West African nation and Russia.

Georgi Smirnov, Nordgold’s CEO, articulated the company’s vision at the recent #SPIEF2025 event, stating, Africa is an extremely promising region. Many countries have absolutely untapped potential. By the way, we are ready to invest in both Sierra Leone and Guinea-Bissau. He emphasised that while specific agreements were not yet in place, the projects are omnipresent and the opportunities are undeniable.

Nordgold’s current operational footprint extends across Burkina Faso, Guinea, Russia, and Kazakhstan. The company boasts a robust portfolio of exploration licences, alongside four operational sites and two projects under development, indicative of its aggressive expansion strategy within the gold sector.

Burkina Faso’s military-led government in April 2025 granted Nordgold an industrial mining licence for the Niou gold project. This decision, aimed at capitalising on record-high gold prices to bolster an economy facing significant security challenges, signals a clear pivot by the Burkinabe junta towards Moscow and away from traditional Western allies.

The Niou gold deposit, located in the Kourweogo province, spans 52.8 square kilometres within the exploration licence area previously held by Jilbey Burkina, now a Nordgold subsidiary. Nordgold already manages the operational Bissa and Bouly mines in the country.

The Niou mine is projected to yield approximately 20.22 metric tonnes of gold over its eight-year lifespan. Under the revised national mining regulations, Jilbey Burkina will retain an 85% stake in the venture, with the Burkinabe government holding the remaining 15% without financial contribution.

This project is anticipated to inject £51.5 billion CFA francs (£89 million) into the state budget and contribute £7.06 billion CFA francs to the national mineral wealth fund over its operational life.

The global gold market has seen a surge, with prices escalating by over 25% this year, largely fuelled by geopolitical instability and US trade policies. Burkina Faso, a significant gold producer, reported over 57 tonnes in 2023, according to the non-governmental organisation Swissaid.

Other major players in the Burkinabe mining sector include Canada’s IAMGOLD and Endeavour Mining, and Australia’s West African Resources Ltd.

Ulf Laessing, head of the Sahel programme at Germany’s Konrad Adenauer Foundation, remarked on the importance of such collaborations for Burkina Faso’s fiscally strained government.

However, he also voiced concerns that the Niou project’s proximity to a substantial artisanal mining area might displace local miners, depriving them of essential income. Conversely, the government forecasts the mine will generate 204 jobs and help sustain employment at the nearby Bissa Gold SA mine.