Internal audit in the mining sector in Burkina Faso: best practices and challenges

A strategic sector under regulatory pressure

The mining sector in Burkina Faso has experienced spectacular growth over the past decade, making the country one of sub-Saharan Africa's leading gold producers. This economic importance is accompanied by growing pressure from stakeholders — the state, local communities, international investors — for more transparent governance and more rigorous risk management.

Mining companies operating in Burkina Faso face multiple and sometimes contradictory requirements: maximizing shareholder value while complying with the national mining code, donor ESG standards and EITI principles requirements. Internal audit, when correctly positioned and resourced, is the tool of choice for navigating this complexity.

The specificities of internal audit in the mining sector

Internal audit of a mining company has distinctive characteristics that set it apart from engagements conducted in other sectors:

Operational complexity: Mining production cycles, from drilling to metal sale, involve complex technical processes, specific technologies and high operational risks. The internal auditor must master these specificities to correctly assess the controls in place.

Environmental and social issues: Environmental obligations — mining waste management, site rehabilitation, water management — constitute a major risk area. A failure can lead to considerable financial penalties and lasting reputational damage.

Precious metal inventory management: Securing inventories, weighing, analyzing and accounting for precious metals require particularly rigorous controls, given the inherent fraud risks.

An internal audit framework adapted to the mining sector

Based on our engagements in this sector, we recommend an internal audit framework systematically incorporating:

• An annual audit plan based on a comprehensive mapping of sector-specific risks
• Audit teams combining financial expertise and technical knowledge of mining operations
• Systematic review of contractual obligations with the state and communities
• Rigorous monitoring of ESG indicators and EITI obligations
• Direct reporting mechanisms to the Board Audit Committee

Internal audit thus positioned is no longer a simple verification service — it becomes a strategic partner for management in risk control and continuous performance improvement.