(Ecofin Agency) - Burkina Faso’s largest gold mine, Essakane, produces over 400,000 ounces annually. Despite benefiting from rising gold prices, the Canadian company Iamgold faces soaring costs due to insecurity.

The escalating insecurity in Burkina Faso has taken a toll on Essakane, the nation's biggest gold mine run by Canadian firm Iamgold. Terrorist attacks have driven up operating expenses by 51% from 2021 to 2024, according to the Ecofin Agency's analysis of Iamgold's annual report.

The All-in Sustaining Costs (AISC) for producing an ounce of gold climbed steadily over the years, starting at $1,074 in 2021, rising to $1,234 in 2022, $1,521 in 2023, and hitting $1,625 in 2024. For 2025, Iamgold projects an AISC range of $1,675–$1,825 per ounce. The forecast is driven by higher security expenses impacting operating costs and declining production levels.

The mine is located near the Tri-border region (Burkina Faso, Mali, Niger), a hotspot for terrorist attacks. While Burkina Faso’s security forces escort equipment and fuel deliveries to the site, Iamgold has not disclosed whether air transport is used for personnel or supplies.  This is the case of Endeavour Mining, which now relies on air rotations for staff movement as travel by road in Burkina Faso is riskier with the rising insecurity. 

The unpredictable security situation continues to inflate production costs, with no end in sight. However, soaring gold prices have cushioned the financial blow. Gold from Endeavour’s Essakane mine fetched $2,383 per ounce in 2024, a 33% surge since 2021. Goldman Sachs forecasts prices will peak at $3,100 per ounce in 2025, offering a lifeline amid rising costs.

Production at Essakane stood at 480,000 ounces in 2022, 413,000 ounces in 2023, and 454,000 ounces in 2024. Iamgold expects the mine’s output to stand between 400,000 and 440,000 ounces in 2025.

This article was initially published in French by Emiliano Tossou

Edited in English by Ange Jason Quenum