Closure of ESSAKANE in 2027/2028 In my mining career, I’ve had some experience with mine closures, and I’d like to share some of my thoughts on the subject matter. Given the recent instability in Mali, it's understandable that shareholders might be concerned about operations in neighboring Burkina Faso. However, looking at the problem objectively, with such a short mining life remaining, I doubt that the Burkina Faso government would entertain closing, taking over, or selling the mine. This decision would amount to a financial disaster, and who would be interested in buying a mine on its last legs?
I’ve always maintained the view that the government is of sound mind and would prefer to continue the constructive and positive working relationship with their JV partner IAMGOLD. I believe the government would do whatever it takes to enhance security measures to protect its asset, as both entities benefit.
Most importantly, when a mine is facing the end of its mining life, there are always significant shutdown costs written into the contract that must be absorbed by the operating mining company. A company doesn’t just walk away without fulfilling their contractual mining responsibilities. The Burkina Faso government must be well aware of these closing mining costs, which would be in the millions of dollars. Therefore, the government will do whatever it takes to ride out the existing JV agreement and get as much as they can from the legal arrangement.
It's unfortunate that some political forces have used the situation in Mali, with reports of abuses by Russian mercenaries and ongoing violence, to advance their causes, which certainly adds to regional instability. IAMGOLD has stated that it continues to have a good relationship with the Burkina Faso government and there have been no challenges to its permits for the ESSAKANE mine. Some shareholders have pressed the panic button and sold their shares, but considering everything, I firmly believe that the ESSAKANE mine will close at the end of its mining life in 2027/2028.