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Weeks after Nordgold left, Burkina Faso’s mines chamber assures extra security for industries

Published

2 years ago

April 18, 2022

Following the shutting down of Russia’s Nordgold, a gold mine in the insurgent-hit country earlier this month, the president of Burkina Faso’s mines chamber said that extra measures are in place to avoid a future occurrence.

Nordgold subsidiary Société des Mines de Taparko (SOMITA) director-general, Alexander Hagan Mensa announced the decision to shut down in a statement that said access to the mining site has become ‘quasi-impossible’ in recent weeks, placing the lives of staff in danger at the site, which is located close to the tri-border area of Niger, Burkina Faso, and Mali.

The Russian firm said the decision was due to the deteriorating security situation in the West African nation where Islamist militants have gained ground and escalated attacks in recent years.

However, the closure prompted a meeting on April 14 between the head of the army and the mines chamber.

“Measures will be taken and strengthened on all aspects… to give us even more security,” the chamber’s president Adama Soro told journalists but did not reveal details of strategies discussed.

Improved security was the way to avoid a “spiral of suspensions,” he said and urged investors to stay in the country, noting 16 gold and one zinc mine felt protected enough by the army to continue their operations.

Nordgold closure is another in the recent wave of shutting down of foreign businesses in African African countries, many of which largely depend on foreign investment to drive their economy. Exit or lack of foreign investment are developments that threaten fragile economies like Burkina Faso. Slamreportsafrica.com reported on Thursday that Ride-hailing company, Uber, has suspended its services in Tanzania as a result of regulations that are not business-friendly which has made its operation in the East African country.

Over the weekend, Standard Chartered Bank, another multinational, said it has decided to end its operations in seven countries in the Middle East and Africa to “accelerate its strategy, deliver efficiencies, reduce complexity and drive scale.”

Burkina Faso is currently under a military junta headed by Lieutenant-Colonel Paul-Henri Sandaogo Damiba who amongst other reasons seized power through coup in 2021 to address security challenges bedeviling the West African country, but the current development does not suggest not much has changed for now too.

Related Topics:Burkina Faso Featured nardgold

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VenturesNow

Nigeria offers oil majors faster exit if …

Published

7 hours ago

May 4, 2024

Ifeoluwa Dada

Oil-rich West African country, Nigeria, has offered major oil companies, such as Exxon Mobil and Shell, that planned to leave the country’s onshore oil an offer for quicker exit approval on the ground that they take responsibility for spills rather than wait for authorities to apportion blame.

The regulator tt a meeting with the companies in Abuja, Nigerian Upstream Petroleum Regulatory Commission (NUPRC) chief Gbenga Komolafe offered a short-term option with faster approval if the companies commit to cleaning up spills and compensating communities.

To concentrate on deepwater drilling, Exxon, Shell, TotalEnergies, and Eni have all attempted to withdraw from Nigeria’s oil-rich Niger Delta in recent years, claiming security issues including theft and sabotage. Regulatory obstacles have, however, caused their exits to be postponed.

“We have the undertaking here. The consent here though fixed for June, could be much shorter,” he said.

“If you agree to take that option, you sign the undertaking knowing that there are obligations to be fulfilled,” Komolafe said.

The second long-term alternative might push back the final approval until August by requiring NURPC to identify and assign all liabilities first. In order to safeguard the environment, local populations, and the long-term viability of the assets, NURPC is attempting to strike a compromise between expediting the exit for oil majors.

According to them, the corporations are considering their alternatives and will reply shortly. Meanwhile, some observers say the accelerated option could cost oil majors millions of dollars for cleanups and reparations.

“The risk with option 1 is the transferor will continue to take responsibility for the asset until the process is completed while option 2 puts them at the mercy of the regulator since they waived their right to deemed approval,” said Ayodele Oni, energy lawyer at Lagos-based Bloomfield law firm.

Following the majors’ withdrawal, 26 onshore blocks with a combined estimated reserve of 13.76 billion barrels of oil, 2.70 billion barrels of condensate, and roughly 90,717 billion cubic feet of gas are up for grabs, according to NUPRC.

“We aim to ensure that the companies that take over these blocks have the necessary financial resources and possess the technical expertise required to responsibly manage the blocks throughout their lifecycle under good asset stewardship practices,” Komolafe said.

VenturesNow

Nigeria’s Security Exchange chief to meet foreign, local crypto exchanges, others over crypto regulation

Published

7 hours ago

May 4, 2024

Ifeoluwa Dada

On Monday, local and international cryptocurrency exchanges will meet with Dr. Emomotimi Agama, the recently appointed Director General of the Securities and Exchange Commission, to deliberate and reach a consensus regarding the current state of cryptocurrency in Nigeria.

The Nigerian Blockchain Industry Coordinating Committee called the meeting to discuss pertinent issues and outline a forward-thinking plan for cryptocurrency regulations.

The meeting is open to all operators of digital asset exchanges, wallet providers, other virtual asset service providers (VASPs), and pertinent industry associations and bodies in order to address pertinent issues and map out a progressive path for cryptocurrency regulations in Nigeria.

The associations include the Blockchain Nigeria User Group (BNUG), the Cryptographic Development Initiative in Nigeria (CDIN), the Digital Currency Consortium (DCC) and the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN).

Uwakwe expressed hope that the meeting could spark the right kind of change that would favour all crypto stakeholders in Nigeria and internationally.

“Everyone’s presence and insights are invaluable as we collectively navigate the regulatory terrain and strive toward fostering an environment conducive to innovation and growth within the blockchain and cryptocurrency sector,” he said.

Nigeria has since initiated investigations into the use of cryptocurrencies in the nation and taken actions that run counter to its December 2023 decision to lift a ban on them.

The Central Bank of Nigeria blocked local cryptocurrency users’ access to the websites of numerous cryptocurrency exchanges, including Binance, OctaFX, and others in February.

Additionally, the SEC of Nigeria suggested changing the regulations governing platforms that provide cryptocurrency services. It suggested raising the registration fee for cryptocurrency exchanges from N30 million ($18,620) to N150 million ($93,000).