The Hounde gold mine in Burkina Faso, the second-biggest mine of Endeavour Mining Plc, has resumed operations after an 11-day strike by workers. The strike, which began on January 21, disrupted production and caused significant financial losses for the company, its employees, and its stakeholders.
According to an internal memo sent to employees on February 1 and seen by Bloomberg, the management reached an agreement with the workers to end the strike and avoid a collective dismissal. The memo also said that the company had secured a court order on January 31 that instructed the expulsion of protesters from the mine site.
The Hounde mine accounted for almost 30% of the 1.1 million ounces of gold produced by Endeavour last year, according to company data. Output at Hounde is expected to drop 7% to 290,000 ounces in 2024. The company also has assets in Senegal and Ivory Coast.
The strike at Hounde was one of the latest challenges faced by the mining industry in Burkina Faso, a landlocked country in West Africa that has become the fourth-largest gold producer in the continent. The country has been grappling with a surge of Islamist violence that has killed more than 2,000 people and displaced over one million since 2019. The insecurity has hampered mining activities and deterred some investors.
Despite the difficulties, the government has been trying to attract more foreign investment and boost the mining sector, which contributes about 10% of the gross domestic product and 70% of the export earnings. In 2023, the government adopted a new mining code that aimed to increase transparency, protect the environment, and ensure local communities benefit from the mineral wealth.
The mining sector also provides employment and income for many people in Burkina Faso, especially in rural areas where poverty and underdevelopment are widespread. According to the World Bank, about 1.9 million people, or 10% of the population, are directly or indirectly involved in artisanal and small-scale gold mining.
The strike at Hounde highlighted the need for better dialogue and cooperation between the mining companies and the workers, as well as the government and civil society. The resolution of the dispute was welcomed by all parties as a positive step towards restoring stability and confidence in the sector.
As the world’s demand for gold remains high, Burkina Faso has the potential to become a leading producer and exporter of the precious metal, if it can overcome the security and social challenges that threaten its development. With the support of its partners and the commitment of its people, the country hopes to achieve a more prosperous and peaceful future.
Source: Bloomberg
