KEY POINTS:
- West African Resources (WAF) asserts it is operating in compliance with regulations after Burkina Faso cancels one of its mining permits.
- The cancellation has raised concerns about the stability of Burkina Faso’s mining sector and its impact on foreign investment.
- WAF is engaging with the government to resolve the issue while reaffirming its commitment to ongoing projects in the country.
WAF, a mining company in West Africa, has come out to justify its mining activities after the government of Burkina Faso revoked one of its major licenses. WAF has stated that it has complied with all the legal requirements and also assured the public on the legalities of the company as more doubts arise over the stability of the mining sector in the country.
The company that owns the Sanbrado Gold Project in Burkina Faso is in discussions with the government to resolve the problem and allow the firm to carry on its business unhindered. This comes at a time when the West African nation, which is a major producer of gold is experiencing pressure from foreign investors over regulatory instability.
Permit cancellation raises industry concern
The revocation of WAF’s mining permit has caused concern in Burkina Faso’s mining sector which relies on foreign investment for its development. The action has raised fears that the same could be done to other mining firms investing in the country, which may deter other investors.
It is still unknown why the permit was canceled, but some industry professionals believe that it is connected with the increased control from the government side, which is trying to gain more control over its resources. For now, WAF has insisted that it is operating within the legal framework of the host countries’ mining laws and is optimistic that the impasse will be resolved.
In a report by MiningNews, the company’s management has vowed to engage the government of Burkina Faso to clear any misunderstandings and continue with the success of the mining projects in the country.
Analysis on the effect of the act on Burkina Faso’s mining sector and investment environment
Currently, Burkina Faso’s mining industry has expanded quickly and has built itself on gold mining. However, the government’s decision to revoke WAF’s permit may deter investors at a time when the country is trying to woo more investors.
Mining companies from other countries such as WAF are a major source of employment and have a large contribution to the GDP of Burkina Faso. If such regulatory problems like permit cancellations continue to occur, they can hinder the growth of the sector, hence, the economy and revenue mobilization.
Now people are waiting for the government of Burkina Faso to act on this case and whether this is a sign of change in the mining policy. The result could either have a positive or negative impact on the future investors depending on the way the situation turns out to be.
WAF still dedicated on Burkina Faso projects
However, West African Resources has reassured its stakeholders that it is here for the long haul in Burkina Faso and its projects. Sanbrado Gold Project is one of the company’s operations that have made Burkina Faso one of the leading gold producers in Africa. WAF is still in dialogue with the government in good faith and is working to resolve the issue as soon as possible.
The way that WAF will handle this regulatory issue will be vital in defining its future in Burkina Faso. For now, the company still has hope that the outcome will be positive and the company is sure that it will continue its operations without any interruptions.
