Burkina Faso Mining Stake Plans: Government’s Option to Boost Confidence, Not Demand

Burkina Faso’s Mining Stake Plans and Investor Reassurance

Burkina Faso recently clarified its position regarding the mining sector’s evolving equity structure. The government is seeking an option to acquire an additional 35% stake in West African Resources’ Kiaka gold mine under the new Mining Code. Mamadou Sagnon, director-general of the mining registry, emphasized the request is optional, not compulsory. The revised Mining Code allows the state to hold a 30% paid interest, alongside a 15% free-carried stake, linking the paid interest to exploration and feasibility costs rather than the market valuation of the mine.

This strategic move aims to enhance confidence in Burkina Faso’s mining sector. Sagnon highlighted that government participation could encourage investors to remain and increase investments in the country. This approach counters fears of resource nationalism and aims to create a stable, inviting investment environment despite regional uncertainties.

West African Resources and Regional Mining Dynamics

West African Resources (WAF) has seen its shares temporarily halted amid this development. However, the company remains in dialogue with the government. WAF recently aligned the equity structure of its Sanbrado, Kiaka, and Toega projects to comply with the Mining Code. This raised the government’s free-carried stake to 15%. The Kiaka mine began production in June 2025. It is expected to produce around 234,000 ounces of gold annually for 20 years.

The broader West African region faces growing resource nationalism concerns, with countries like Mali enacting new mining regulations. Burkina Faso’s government has already nationalized key assets and established the state-owned Société de Participation Minière du Burkina (SOPAMIB). Despite this, Orezone Gold’s Bomboré mine remains outside government acquisition plans, easing some investor fears.

SuperMetalPrice Commentary:

Burkina Faso’s clarification that its mining stake acquisition is an option rather than a demand reflects a pragmatic approach to balancing state interests with investor confidence. The Mining Code reforms represent a significant shift towards increased state participation without outright nationalization, a delicate balance in West Africa’s resource sector. Investors should monitor how these changes impact operational transparency and profit distribution, especially as the country positions itself as a regional gold producer with ambitious long-term goals. This measured approach could serve as a blueprint for other resource-rich nations navigating sovereignty and investment appeal.