ABIDJAN, April 26, 2025 (BSS/AFP) - Burkina Faso's ruling military junta has granted a new gold mining licence to the Russian firm Nordgold, according to the minutes of a cabinet meeting seen by AFP on Friday.

Gold production in Burkina Faso, which is moving closer to Russia diplomatically and militarily, accounts for around 14 percent of state revenue, according to official figures.

"The Council of Ministers adopted a decree granting an industrial mining licence for a large gold mine called Niou to the company Nordgold Niou," the government minutes said.

The licence covers 52.8 square kilometres of land, with total expected production estimated to exceed 20.2 tonnes of gold over eight years, the minutes said.

The project is estimated to contribute 51 billion CFA francs ($88.7 million) to the state coffers, with another seven billion francs ($12.2 million) going towards the Mining Development Fund, the document said.

"The project will create 204 jobs, including 75 direct jobs and 129 indirect jobs," the minutes said.

Gold has become Burkina Faso's leading export commodity over the past decade, overtaking cotton, with approximately 70 tonnes produced per year by 17 mines.

Since 2015, Burkina Faso has been plagued by jihadist violence from groups linked to the Islamic State group or Al-Qaeda.

The country has been run by military leaders following a coup headed by Captain Ibrahim Traore in September 2022.

The junta has already granted Nordgold an operating permit for the Yimiougou site, covering 31.4 sq km with a total estimated production of 2.53 tonnes of gold.

Niger, Burkina Faso and Mali quit the Economic Community of West African States at the beginning of the year, accusing the ECOWAS bloc of failing in the fight against jihadism.

They formed their own Alliance of Sahel States, pivoting away from former colonial power France and towards Russia.

Moscow has struck defence agreements with the group, and cooperates on energy and mining.