KEY POINTS
- Endeavour Mining is opening its second gold mine in Côte d’Ivoire, enhancing West Africa’s gold production capacity.
- The $410 million Lafigué mine is set to enhance Endeavour’s operations in Côte d’Ivoire, with an expected lifespan of 13 years.
- Proposed mining code faces industry pushback over potential tax and permit changes
Endeavour Mining, West Africa’s largest gold producer, marked its 30-year milestone in Côte d’Ivoire with the inauguration of its second mining site, Lafigué, on October 19, 2024. Located in the country’s northern region, the Lafigué mine is poised to boost Africa’s gold output, projecting between 1.13 million and 1.26 million ounces in 2024.
Lafigué commenced production in September 2023 after a $410 million (CFA 250 billion) investment, with a 13-year mine life and a substantial reserve of 65 tonnes as of 2024.
Côte d’Ivoire’s mining sector and GDP impact
Côte d’Ivoire’s mining sector contributes over 3 percent to GDP and generated $2.1 billion in 2022. With Lafigué’s addition, active mining permits now total 15, aiming to boost production from 52 tonnes in 2023 to 55 tonnes in 2024, a 5.77% rise.
At Lafigué’s inauguration, Endeavour Mining CEO Mark Cockerill affirmed the company’s commitment to job creation and economic benefits for local communities. Mines Minister Mamadou Sangafowa Coulibaly echoed this, highlighting the sector’s role in generating employment and driving economic growth.
Implications of the controversial mining code reform
While the inauguration was a significant milestone, the mining sector in Ivory Coast is facing uncertainty due to the proposed new mining code. The proposed mining code plans to abolish mining tax exceptions and combine artisanal and semi-industrial permits with industrial permits.
By implication, there will no longer be tax breaks and all mining firms will be subjected to the same tax system which could potentially affect the profitability of key players including Endeavour Mining.
Despite these challenges, the sector continues to attract investment from the diaspora as the British Montage Gold Group recently announced the discovery of a “world-class” gold mine in the country.
The mines minister emphasized the importance of balancing the government’s interests with those of the operators in the industry to ensure continued investment and development. As such, the Ivorian government has assured all the sector’s stakeholders that the reform would be developed through a participatory process.
Endeavour Mining, as a major player in the Ivorian mining sector, will closely monitor the regulatory developments and their potential impact on its operations and future investments.
