After Ibrahim Traoré, Burkina Faso's Head of State, threatened to withdraw mining permits, Canadian miners are trying to reassure their shareholders. Fortuna Silver Mines claimed to have received the support of Burkina Faso's Ministry of Mines, while Orezone Gold claimed to have received direct support from the government. For its part, IAMGOLD simply stated that it was not aware of any upcoming changes.
The Canadian miners are also emphasizing their full compliance with the country's laws, thus preparing the legal ground on which potential license withdrawals could slide. Indeed, should the need arise, these conflicts between the Burkinabe state and Canadian mining companies could end up before the tribunals of the International Centre for Settlement of Investment Disputes, due to the bilateral agreement on the promotion and protection of foreign investments between Canada and Burkina Faso that came into force in October 2017.
For the moment, it's hard to say whether these threats are communication or premeditation. On the other hand, the Toronto stock market reacted swiftly, with Fortuna Silver Mines and Orezone Gold losing around 10% of their value. IAMGOLD, however, was the hardest hit, losing 15% of its value on the Toronto Stock Exchange. With 80% of its gold production coming from the Essakane mine, the Canadian mining company remains highly dependent on Burkina Faso.