Problem for Miners in Burkina Faso Political Turmoil

Burkina Faso, the fourth largest gold producer in Africa, is facing political upheaval. The lengthy incumbency of former president Blaise Compaore had been presented by miners in the country as an attribute. Recent events in the country are another example of artificially imposed stability erroneously being treated as an investment benefit rather than a warning. Journalists in Burkina Faso are reporting today that the interim president and prime minister have been detained in a coup by soldiers connected to Compaore. The country was within a month of scheduled elections. The election had been called after Compaore, president for 27 years, had been forced from power by protesters in October 2014. Companies can steer away from direct trouble in a country covering 275,000 square kilometres but a stability premium can translate quickly into an instability discount as a new governance structure evolves. Among the ASX listed companies with mineral interest in the country are Gryphon Minerals, Boss Resources, West Africa Resources and Azumah resources. Orbis Gold was another before being taken over by Canadian-based SEMAFO in March.