Two Russian private security companies have entered into a dispute over the contract to protect the „Bissa“ gold mine in Burkina Faso, one of the key assets of the Nordgold mining group, controlled by the family of Russian billionaire Alexei Mordashov. The dispute is escalating amid growing security risks in the West African country and reports of a possible sale of the company’s local assets for USD 1 billion or more, Billionaires.Africa reports.
The Moscow-based security company RSB-Group, headed by Oleg Krinitsin, has lost the contract to guard the mine to another Russian firm. Subsequently, the company sent letters to the authorities in Burkina Faso requesting intervention in the dispute.
In its correspondence, RSB-Group also raised allegations related to security operations around the mine, including alleged attacks on settlements of the Fulani ethnic community. These claims have not been independently confirmed. The name of the competing company and the financial value of the disputed contract have not been disclosed. RSB-Group has been included on the US sanctions lists since 2022.
The „Bissa“ mine is located approximately 100 kilometers north of the capital Ouagadougou, in an area where armed groups linked to al-Qaeda and the Islamic State have been carrying out attacks on mining sites, workers and transport routes for years.
Due to the unstable situation, companies in the mining sector are increasingly relying on private security organizations, state security forces and volunteer formations. In April 2022, Nordgold was forced to suspend operations at another of its mines in the country – „Taparko“ – after attacks endangered personnel and disrupted supplies.
Recently, Burkina Faso’s Minister of Security Mahamadou Sana visited „Bissa“ to inspect the measures protecting the site. The management of the local company Bissa Gold emphasized the importance of state support for continuing production.
More than USD 355 million in gold annually
The mine is operated by Bissa Gold SA, a subsidiary of Nordgold. The Russian company began production in January 2013 following initial investments of approximately USD 250 million. Nordgold owns 90% of the project, while the remaining 10% is owned by the government of Burkina Faso.
According to the latest report by the Extractive Industries Transparency Initiative (EITI), production at the „Bissa-Zandkom“ complex reached 4.52 tons of gold worth USD 355.49 million in 2024. In the same year, Bissa Gold paid more than 55 billion West African CFA francs, or approximately USD 95 million, into the state budget in the form of taxes, concession fees and other payments.
Nordgold continues to expand its presence in the country. In April 2025, the military government granted the company an industrial mining license for the „Nio“ project, located near „Bissa“. The deposit is expected to yield approximately 20.22 tons of gold over a period of eight years.
Possible deal worth more than USD 1 billion
The conflict between the security companies coincides with reports of interest in acquiring Nordgold’s mining assets in Burkina Faso.
Russian mining company Okto Group, chaired by Alexei Tolokonnikov, is considering purchasing the „Bissa“ and „Bouly“ mines in a deal that could reach or exceed USD 1 billion.
Earlier this year, Nordgold, Okto Group and Mordashov’s holding company Severgroup declined to comment on possible negotiations. There is currently no confirmation that a deal has been completed.
Okto Group entered the gold-mining sector in 2024 by acquiring assets from the Russian company Polyus and subsequently began rapidly expanding its operations.
Sanctions and ownership changes
Alexei Mordashov, who is among Russia’s wealthiest entrepreneurs, was placed under sanctions by the European Union and the United States after the start of Russia’s invasion of Ukraine in 2022. In June of the same year, Washington also imposed sanctions on Nordgold.
Following subsequent ownership changes, his wife Marina Mordashova was identified as the controlling shareholder in the gold-mining company.
According to Forbes’ estimate, the fortune of 61-year-old Mordashov amounts to approximately USD 37 billion, placing him first among Russia’s wealthiest people. Most of his wealth is connected to the steel group Severstal, where he remains chairman and principal shareholder.
The developments in Burkina Faso are indicative of the growing importance of African gold deposits for Russian investors. After Captain Ibrahim Traore came to power in 2022, the country deepened its relations with Moscow while also taking measures to strengthen state control over the gold-mining industry.
The dispute over security at „Bissa“ shows that the security of mining sites is becoming a significant factor in investment decisions, particularly when assets worth hundreds of millions of dollars are located in regions experiencing ongoing armed instability.