Burkina Faso left reeling after attack on Canadian mining company

Almost 40 people killed and more than 60 injured after convoy ambushed by gunmen

An ambush on a convoy transporting workers of Canadian gold miner Semafo in Burkina Faso left nearly 40 people dead in one of the deadliest attacks to hit the west African nation, shaking investor confidence in mining operators in the country.

Wednesday’s attack on five busloads of company employees and contractors took place in the east of Burkina Faso approximately 40km from its Boungou open-pit mine site on the road to Fada, Semafo said in a statement.

The governor of Est, the region where the attack happened, said that 37 people were killed and more than 60 were wounded in the ambush by gunmen.

Shares of mining companies operating across Burkina Faso were lower on Wednesday after the attack.

Montreal-based Semafo dropped 11 per cent after the incident, as investors were spooked by the deteriorating security situation in the north and east of the African nation. Endeavour Mining, Roxgold and Iamgold each fell by about 2 per cent, while Orezone tumbled nearly 6 per cent.

The attack highlights the worsening security situation in the north — where there is a strong jihadi terrorist presence — and east of Burkina Faso, raising concerns among investors that costs to beef up security could rise for mining companies or they could be forced to suspend production if security risks continue to escalate.

“This attack is the worst that we are aware of and, while in the more troublesome eastern part of the country, is also concerning in that it appears that the convoy was specifically targeted,” said Numis Securities, a stockbroker, in a note.

The attack is the third within 15 months against Semafo, which has another gold mine, Mana, in the west of the country.

In December 2018, government security forces were attacked on the same road from Boungou to Fada, leaving five dead. And in August of last year, there were two separate armed attacks against Semafo employees as they were transported to and from the mines.

After the duo of attacks last August, Semafo said that it had begun moving foreign employees by helicopter between the capital, Ouagadougou, and its mines. It also said that it had enhanced protection for local employees who continued to travel by bus.