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Gold has enjoyed a prosperous year. A confluence of turbulent events within the global economy has propelled prices for the precious metal to unprecedented heights in 2025.
Amidst trade disputes and international instability, gold is perceived by investors as a rare stable asset. Demand is soaring across the board, from central banks and large institutional investors to individual retail participants. However, the origins of this gold, and its potential connection to conflicts in mining regions, often remain obscure.
For governments in West Africa’s Sahel region, the stakes are particularly elevated. Gold represents a crucial economic lifeline for the military juntas of Burkina Faso, Mali, and Niger, which are grappling with jihadist insurgencies, regional isolation, and the devastating consequences of climate change.
“With gold prices at historic highs… the military governments are anticipating direct benefits,” Beverly Ochieng, a senior researcher at the global consultancy firm Control Risks, stated to the BBC.
Collectively, these three Sahel nations produce approximately 230 tonnes of gold annually, according to estimates from the World Gold Council, equating to roughly $15 billion (£11 billion) at current market values.
The absence of comprehensive records for artisanal and small-scale gold mining suggests that this figure is likely a conservative estimate.
The combined gold production of these three states surpasses that of any other African country, establishing the Sahel region as a significant global contributor to the gold market.
Governments assert that the revenue generated from this lucrative sector benefits citizens through enhanced “sovereignty,” despite the increasing involvement of Russian firms in the industry at the expense of Western-owned entities.
For instance, Mali’s junta leader, Gen. Assimi Goïta, recently laid the foundation stone for a gold refinery, in which a Russian conglomerate, the Yadran Group, will hold a minority stake. This refinery is projected to create 500 direct jobs and 2,000 indirect employment opportunities.
Burkina Faso is also constructing its first gold refinery and has established a state-owned mining company, requiring foreign firms to allocate a 15% stake in their local operations and facilitate skills transfer to Burkinabé nationals.
AI-generated media campaigns have even been launched to celebrate the country’s military ruler, Capt. Ibrahim Traoré, for securing this vital revenue stream for the nation.
“Mining gold from deepest dirt. But souls are rich and true,” sings an AI-generated Rihanna in a recent song, offering auto-tuned praise for Capt. Traoré.
However, the reality is more complex. According to Ms. Ochieng, Burkina Faso and its neighboring countries require readily available funds to finance counterinsurgency operations.
In Mali, much of this effort has been outsourced to Russian mercenaries, including the Wagner Group and its successor, Africa Corps, which operates under the command of Russia’s defense ministry.
Africa Corps has been involved in military training in Burkina Faso, although the junta officially denies its presence.
Despite limited transparency in public spending, it is believed that these governments allocate significant portions of their budgets to national security.
Military spending in Mali has tripled since 2010, accounting for 22% of the national budget by 2020.
These governments are engaged in combating jihadist groups affiliated with al-Qaeda and Islamic State (IS).
However, Human Rights Watch (HRW) has accused the Malian government and the Wagner Group of committing atrocities against civilians, including unlawful killings, summary executions, and torture.
Similar atrocities by Burkina Faso’s military and allied militias have also been documented.
According to Alex Vines of Chatham House, the Wagner Group and now Africa Corps are often compensated directly in gold or through mining concessions for their services.
“Very little [of the gold revenues] will trickle down to Malians and Burkinabés,” he told the BBC, adding that armed insurgents themselves may be profiting from the trade.
Since the coup in Mali in 2021, government tactics against communities suspected of harboring or sympathizing with jihadists have become more severe, pushing more civilians to join these very groups.
Jamaat Nusrat al-Islam wal-Muslimin (JNIM), an al-Qaeda affiliate and the most active jihadist group in the region, staged an unprecedented number of attacks targeting the Burkina Faso military during the first half of 2025, signaling its growing strength.
Armed groups are also capitalizing on the increased global demand for gold.
A significant portion of gold mining in the Sahel is conducted by the artisanal and small-scale sector, which is often informal, operating on unlicensed sites without government oversight, according to a 2023 report on gold mining in the Sahel by the United Nations Office on Drugs and Crime (UNODC).
Armed groups, including jihadist factions, and Sahel governments are vying for control over many of these small-scale gold mines.
Gold provides a crucial revenue stream for militant groups, which appear to be expanding their territorial influence in both Mali and Burkina Faso.
The UNODC believes that most gold from this type of mining ends up in the United Arab Emirates (UAE), a global hub for gold refining and trading.
“You do see overlap of violent extremist groups moving onto artisanal production areas for control,” said Dr. Vines.
The global surge in gold prices may be prolonging and intensifying conflict in the Sahel, but it has not resulted in increased wages for diggers in artisanal gold mines.
One gold miner in Mali’s northern Kidal region agreed to answer written questions from the BBC anonymously, citing concerns for his safety.
He estimates that, on a “good day,” he earns 10,000 to 20,000 CFA francs, or approximately $18 to $36 (£13 to £26).
He stated that his compensation has not increased in line with global gold prices.
“Prices went up, but the extra profit goes to mine owners… It’s risky and uncertain, but for many of us, it’s the only option,” he added.
Dr. Vines, who previously worked as a blood diamond investigator for the UN, is concerned that gold has become Africa’s primary conflict commodity.
He noted that gold has not received the same level of international scrutiny as diamonds, which fueled bloodshed in several African states throughout the 20th century, particularly during the 1990s.
Intervention by human rights groups and the UN led to the establishment of the Kimberley Process Certification Scheme in 2003, which significantly curtailed the sale of “blood diamonds” on the open market.
However, efforts to combat “blood gold” have been less successful.
This is partly due to the absence of unified ethical standards. The London Bullion Market Association (LBMA), a major authority in the gold market, requires refiners to adhere to standards based on guidelines set by the Organisation for Economic Co-operation and Development (OECD).
The UAE’s enforcement of these regulations has been inconsistent.
In 2021, the country announced its own standards for ethical gold mining; however, this framework remains voluntary. The issue of enforcement has previously strained relations between the Gulf state and the LBMA.
Tracing technology represents another obstacle.
“There is no ‘DNA testing’ for gold. With significant effort, you can trace diamonds before they are polished and cut… But I haven’t seen ways of tracing the origins of a gold nugget,” Dr. Vines said.
Gold is smelted early in the value chain, making it nearly impossible to trace and link to potential conflict zones, he explained.
Dr. Vines believes it is likely that some blood gold from the Sahel ends up in UK markets.
“[Gold] gets smelted in [the] UAE, then goes onto the jewellery manufacturing industry, or into dentistry, or bullion. Some of it clearly comes into the UK. And once it is here, there is no way of testing what it is.”
Another factor hindering the replication of the Kimberley Process’s success, according to Dr. Vines, is that the certification system was not designed to address state governments.
“Kimberley was designed to deal with armed non-state actors in places like Sierra Leone and Liberia,” he said.
For now, gold’s importance for Sahel governments and the inconsistent enforcement of ethical gold standards suggest that the commodity will likely continue to change hands, irrespective of its origin.
Unfortunately for some communities in the Sahel, this may mean paying the price for the trade in blood.
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