How it is fueled for conflict in the Sahel region of West Africa

It’s a wonderful year for gold. Many turbulent events in the global economy have driven the glittering commodity to hit high prices in 2025.

In a world of tariffs and international conflicts, gold attracts investors is one of the few remaining stable assets. Everyone wants to take action, from central banks to large institutions such as hedge funds to retail investors. However, few people know where their gold comes from, or what conflicts can arise in the country that is mined.

The stakes are even higher for governments in the Sahel region of West Africa. Gold is the lifeline of the military junta of Burkina Faso, Mali and Niger, who are plagued by jihadist insurgency, regional isolation and the destruction of climate change.

“Because gold prices have been at a historic height… the military government hopes they can benefit directly,” Beverly Ochieng, a senior researcher at global consulting firms, told the BBC.

According to the World Gold Council estimates, the three Sahel states produce about 230 tons of gold each year, about US$1.5 billion (£11 billion).

The lack of records of manual and small-scale gold mining means that this number may be underestimated.

The three states have more gold production than any other country in Africa, making the Sahel a major global contributor to the gold market.

The government says the proceeds of the lucrative sector benefit citizens through increased “sovereignty” – although Russian companies are increasing their stake in the industry at the expense of Western-owned companies.

For example, Gen assimigoïta, the leader of the military government in Mali Last month, the foundation was laid for the Golden Refineryof which the Russian group (Yadran group) will own a minority stake. The refinery will report that 500 direct jobs and 2,000 indirect jobs will be created.

Burkina Faso is also building its first ever refinery and has set up a state-owned mining company, requiring foreign companies to take 15% of their local business and transfer their skills to the Burkinabé people.

The fake AI media campaign was even to celebrate the charm of the country’s charismatic 37-year military ruler Ibrahim Traoré to direct such an important source of income in the country.

“Dig gold from the deepest dirt. But the soul is rich and real,” Crones added Rihanna to a recent song, confiding on Captain Trare’s praise of her silky, auto-adjustment.

Ms Ochi said the reality was very different, explaining that Burkina Faso and its neighbors needed quick cash to fund the counterinsurgency.

In Mali’s case, most of it has been outsourced to Russian mercenaries, including the Wagner Group and its successor, the African Legion, which is under the command of the Russian Ministry of Defense.

The African Legion had participated in military training in Burkina Faso, but the military government formally denied its existence.

Despite poor transparency in public spending in these countries, governments are believed to devote much of their budget to national security.

Mali’s military spending has been three points in Mali since 2010, and by 2020, the national budget accounted for 22% of the national budget.

The government is fighting jihadist groups associated with al-Qaeda and Islamic states.

But campaign group Human Rights Watch (HRW) accused the Mali government and the Wagner group of committing atrocities against civilians, including illegal killing, summary executions and torture.

It records similar atrocities in the Burkina Faso army and its allied militias.

In their service, the Wagner Group and the current African Legion are usually paid directly with gold or mining concessions, according to Alex Vines of London’s Chatham House think tank.

He told the BBC: “Very little (gold income) will drip into the Marians and Berkinabi.

Since the 2021 Mali coup, cruel government strategies for communities suspected of hiding or sympathizing with jihadists have increased, prompting more civilians to join the groups they are fighting.

Jamaat Nusrat Al-IslaT Wal-Muslimin (JNIM), the Al Qaeda branch of the most active jihadist groups in the region, has been in the first half of the attacks against Burkina Faso Moriest in the first half of the year, a sign of the strength of the group’s growth.

Armed groups also literally fulfilled the global demand for gold.

A large portion of gold mining in the Sahel comes from artisan and small-scale industries, which is often informal, meaning it occurs in unlicensed and undeclared locations far from government oversight, According to the 2023 report on gold mining The United Nations Office on Drugs and Crime (Drug Crime Agency) is in the Sahel.

Armed groups, including jihadist groups and the Sahel government, are competing to control many of these small gold mines.

Gold provides an important source of income for militant groups, which appears to be expanding their territorial influence in Mali and Burkina Faso.

UNODC believes that most of the gold in this mining ends up in the United Arab Emirates (UAE), a global center for gold refining and trading.

“You do see violent extremist groups overlapping and moving to manual production areas for control,” Dr. Vines said.

The rise in global gold prices in Sahel may be an extension and intensifying conflict – but unfortunately, for diggers of artisanal gold mines, this has not led to an increase in owners’ wages.

A miner in the northern base area of ​​Mali agreed to answer the BBC’s written questions anonymously because he was worried about his safety.

He estimates that on a “good day” he earns between 10,000 and 20,000 cfa francs, about $18 to $36 (13 to £26).

He said the amount he paid did not increase from the global gold price.

He added: “The price is up, but the additional profit is attributed to my owners… It’s risky and uncertain, but for many of us, it’s the only option.”

Dr. Vines, who previously served as a UN blood diamond investigator, fears that gold has become a new major conflict commodity in Africa.

He noted that gold did not receive the same international attention as diamonds, which caused bloody effects throughout the 20th century, especially in several African states in the 1990s.

Interventions by human rights groups and the United Nations led to the establishment of the Kimberley Process Certification Program in 2003, which ended the sale of so-called “blood diamonds” on the open market.

But the attempt to crack down on “Blood Gold” was not that successful.

This is partly due to the lack of a unified moral standard. The London Gold Bar Market Association (LBMA) is a major authority in the gold market, requiring refineries to comply with standards based on guidelines developed by global institutions, the Organization for Economic Cooperation and Development (OED).

The UAE’s implementation of these regulations has been fragmented throughout history.

In 2021, the country announced its own ethical gold mining standards – however, the framework remains voluntary. Past law enforcement issues have caused tensions between the past Gulf of Mexico and the LBMA.

Tracking technology represents another obstacle.

“There is no ‘DNA test’ for gold. There is a lot of effort that you can track before the diamond gets polished…but I haven’t seen a way to track the origins of the gold mine yet,” Dr. Vines said.

He explained that gold was smelted early in the value chain, and it was nearly impossible to trace and connect with potential conflict areas.

Dr Vines believes that some of Sahel’s blood gold may eventually enter the UK market.

“(Gold) was smelted in the UAE and then into jewelry manufacturing, or into dentistry or gold bars. Some of them obviously went into the UK. Once here, there was no way to test what it was.”

According to Dr. Vines, it is difficult to repeat the success of the Kimberley process because the certification system is not designed to deal with state governments.

“Kimberley was designed to deal with armed non-state actors in places like Sierra Leone and Liberia,” he said.

For now, the importance of gold to the Sahel government and the fragmented implementation of the ethical gold standard means that commodities may continue to change hands regardless of their origins.

Unfortunately for some communities in the Sahel, this could mean paying for the blood trade.