Burkina Faso has strengthened West African Resources Pours First Gold As Burkina Faso Strengthens Mining Control its hold on mining revenues after implementing a revised 2024 mining code that increased the government’s free carried equity stake in gold projects from 10% to 15%.
West African Resources (WAF), the country’s largest gold producer and a major foreign investor, reflected the change in its interim financial report for the six months ending June 2025.
WAF’s executive chairman, Richard Hyde, confirmed that the equity adjustment was finalized in July and August across the company’s three flagship operations: the Sanbrado (Somisa), Kiaka, and Toega mines.
“This 5% equity transfer to the State for nil proceeds has been recorded in the consolidated statement of changes in equity as an A$33.4 million decrease in retained profits and a matching increase in non-controlling interest in the half year,” Hyde explained.
He added that moving forward, “each of the subsidiaries will pay the State a priority dividend equal to 15% of annual company profits, with WAF retaining and repatriating its 85% share according to available free cash flow.”
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This adjustment, combining a higher state equity stake and a mandatory annual dividend, has already strengthened Burkina Faso’s mining revenues.
Gold remains the country’s most critical export and key source of foreign currency, and the government in Ouagadougou is looking to leverage these gains to bolster state finances.
Industrial gold output is projected to climb 4% to 55.7 tons this year, according to Aristide Belemsobgo, director general of mines and geology at the Ministry of Energy, Mines and Quarries.
The move comes at a pivotal time for Captain Ibrahim Traoré’s administration, which is seeking additional funding to counter an intensifying Islamist insurgency after cutting ties with several Western partners and deepening cooperation with Russia.
The fiscal boost is further amplified by record-high global gold prices, giving the government greater room to support security operations and public programs.
Although WAF’s ownership has dropped from 90% to 85% under the new rules, the company still controls 6.5 million ounces of gold reserves across its projects.
It forecasts an average annual production of 480,000 ounces over the next decade, peaking at 569,000 ounces in 2029.
Production is already on track to grow 40% this year, aided by ongoing exploration work, including 25,000 meters of drilling at Sanbrado’s M5 target.
For Ouagadougou, the increased earnings from gold mining Burkina Faso Raises Government Stake In Gold Mines To 15% Under New Mining Law promise stronger fiscal stability, resources needed to fund security, social initiatives, and broader economic resilience, a reflection of the Sahel’s growing drive to reclaim greater control of its natural resources, Business Insider reported.
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Image Credit: Business Insider Africa
