License allocations: Burkina Faso

Burkina Faso’s 2012 EITI Report identified an agreement between the government and a mining company which was not entered into in accordance with the laws and regulations governing the sector.

According to the 2012 EITI Report, the Government of Burkina Faso and the company Pan African Limited entered into a public-private partnership related to the Tambao deposit on 11 August 2012. The Tambao deposit is one of the largest manganese deposits in the region. Despite the absence of any legal framework enabling such agreements to be signed at the time, the agreement was concluded by the Minister of Mines and Energy on behalf of the State, and approved by the Minister of Economy and Finance. It was only on 23 May 2013 that a decree stipulating the legal arrangements for public-private partnerships was issued. In addition, the EITI Report revealed that a signature bonus of USD 10 million was paid related to the agreement yet the legal framework does not provide for payment of such bonuses.

The 2012 EITI Report recommended that mineral agreements and contracts should be entered into in accordance with the applicable laws in order to guarantee and safeguard the interests of the state and the company. The report also recommended that laws and regulations governing signature payments should be put in place.

The government and the MSG have not yet considered this recommendation.