Introduces local content provisions in the mineral sector
31 Jul 2024
On 31 July 2024, Burkina Faso adopted Act No 017-2024/ALT, relating to local content in the mineral sector.
The new Act defines local content as “the set of mechanisms for the development of national capacities in the provision of goods and services, the use of local human resources, the transfer of technology, the subcontracting of enterprises and the promotion of domestic investors throughout the value chain of the extractive industry “.It applies to all activities carried out in the territory of Burkina Faso, directly or indirectly related to exploration, research, development, exploitation and the closure of mines and quarries. It also covers the transport of mining substances, as well as the processing, recovery and marketing of products from the mining sector.
The new Act is binding on mining companies, their subcontractors, co-contractors, as well as suppliers of goods and services operating for a mining or quarrying company in the national territory. The main objective is to promote human capital in Burkina Faso. The law introduces progressive quotas for local employment, depending on the different levels of responsibility within companies.
A notable feature of this legislation is the creation of a fund to support the development of local content. The purpose of the fund is to finance the activities relating to the implementation of local content. It will be fuelled inter alia by fines and penalties, donations and bequests, as well as by a contribution from local desks and suppliers of goods and services to mines. Tis contribution will be levied on contracts for benefits and sales, both locally and on exports, according to a progressive scale of in groups.
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Type:
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Treatment and operation (Operational conditions)
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Industry:
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Primary (Mining and quarrying)
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Sources:
