Burkina Faso has officially increased its government ownership in major gold mining projects from 10% to 15%, in line with the new Mining Code adopted in August 2024.

This change means the state will now receive a larger share of profits from gold mining operations without any additional investment, marking a significant shift in the country’s approach to managing its natural resources.

The adjustment affects several prominent Gold Projects, including the Sanbrado, Kiaka, and Toega mines, all operated by Australia-listed West African Resources.

Following negotiations with the government and other stakeholders in the mining sector, West African Resources has accepted the new terms.

Aside from this increase in the state’s equity stake, the company confirmed that all other key conditions of its existing agreements with Burkina Faso remain unchanged.

“Our 2025 cost and production guidance of 190,000 to 210,000 ounces of gold at an all-in sustaining cost of less than $1,350 per ounce remains intact,” said Richard Hyde, Chairperson of West African Resources.

He also noted that construction at the Kiaka project is progressing on schedule and within budget, with the first gold expected to be poured early in the third quarter of this year.

Burkina Faso has emerged as one of Africa’s leading gold producers over the past 20 years, currently ranking fourth on the continent behind Ghana, South Africa, and Sudan.

Gold accounts for over 70% of the country’s export earnings, making it the backbone of its economy.

Since assuming power in 2022, Captain Ibrahim Traoré has made resource sovereignty a priority, emphasizing that the benefits of the country’s gold wealth must be shared more equitably with its citizens.

The new Mining Code reflects this priority by raising the government’s free-carried interest to 15%, strengthening national control and increasing revenue from mining projects.

Traoré’s reforms aim to reverse decades of limited local benefit from a sector dominated by foreign companies, primarily from Canada, Australia, and the UK.

These companies have provided investment and expertise but have repatriated most profits, with the state receiving only modest returns through taxes and a small equity stake.

The revised code now mandates that all mining firms operating in Burkina Faso grant the government a 15% free-carried interest, ensuring a larger, cost-free share of mining profits.

West African Resources supports the new regulation after extensive consultations, aligning with a broader African movement demanding fairer mining agreements, greater transparency, and increased national benefit from natural resources.

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