Key Points
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Burkina Faso says Kiaka mine stake request is optional.
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New Mining Code allows State stake increase to 15 percent.
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WAF in talks with government as shares remain suspended.
Burkina Faso has reassured investors that its request for a larger Kiaka mine stake is not mandatory.
Mamadou Sagnon, director general of the mining registry, explained that the July 2024 Mining Code increased the State’s free-carried interest in projects from 10 percent to 15 percent. The law also permits the government or local investors to purchase more shares on commercial terms.
“In the case of West African Resources, the government asked to open participation up to 35 percent,” Sagnon said at the Africa Down Under conference in Perth. “For now, it is a solicitation. It is not forcing.”
He added that government participation would strengthen confidence in the sector, helping investors feel secure about long-term commitments.
West African Resources responds as shares remain suspended
Concerns about resource nationalism have grown in West Africa, with several countries revising mining codes to secure more local benefit.
Against that backdrop, West African Resources (WAF) confirmed it is in talks with Burkina Faso.
“We are in dialogue with the government and we look forward to a resolution,” said Mirey Lopez, WAF’s sustainability head. She urged investors to follow company announcements for the latest updates.
WAF’s shares remain suspended on the Australian Securities Exchange. The Kiaka mine, which began production this year, is one of Burkina Faso’s largest gold projects. It is expected to deliver about 234,000 ounces annually for the next 20 years.
Mining rules align equity and enforce dividend payouts
Last week, WAF said it had adjusted equity ownership of its Sanbrado, Kiaka, and Toega projects to comply with the Mining Code.
The government now holds a 15 percent free-carried interest in each project, reducing WAF’s stake to 85 percent.
The company also confirmed that annual priority dividends are now mandatory. In August, its subsidiary Somisa declared a $98.35 million dividend to the government. That payment represented 15 percent of retained earnings through 2024.
WAF expects that Sanbrado, Kiaka, and Toega will each make 15 percent yearly profit distributions. The company will repatriate the remaining share.
Sagnon concluded that the framework builds trust between the State and foreign investors, ensuring both sides gain from mining operations.
