Burkina Faso has moved to reassure investors that its request for a larger stake in West African Resources’ (WAF) new Kiaka gold mine is optional rather than mandatory under the country’s revised mining legislation.
Speaking at the Africa Down Under conference in Perth, Mamadou Sagnon, director-general of the mining registry, explained that the July 2024 Mining Code increased the State’s free-carried interest in all mining projects from 10% to 15%. The Code also permits the government or domestic investors to acquire further equity on commercial terms.
“In the case of West African Resources, the government addressed a letter to solicit participation of up to 35%. For the moment, it is a solicitation – it is not forcing,” Sagnon said.
He stressed that the provision aims to build investor confidence, not deter foreign capital. “We believe that if the State participates in the company, there will be more confidence to stay in the country and make more investment,” he added.
The comments follow rising investor concerns over resource nationalism across West Africa, where several governments have revised mining codes to capture greater national benefit.
WAF, which has suspended trading of its shares on the ASX while the matter is addressed, said discussions with authorities are ongoing. “We are in dialogue with the government and we are looking forward to a resolution,” said Mirey Lopez, general manager of sustainability.
The Kiaka mine, one of Burkina Faso’s largest new gold projects, began production this year and is expected to deliver 234,000 ounces annually over 20 years from 2025.
Last week, WAF confirmed it had aligned the equity structure of its three projects—Sanbrado, Kiaka, and Toega—with the updated Mining Code, increasing the government’s free-carried interest to 15% and reducing WAF’s share to 85%.
The company also disclosed that the State has introduced a non-discretionary dividend rule. In August, Somisa—the WAF subsidiary that owns Sanbrado—declared a $98.35 million priority dividend to the government, equal to 15% of retained earnings to end-2024.
WAF said the change effectively requires all subsidiaries—Somisa, Kiaka SA, and Toega SA—to make annual 15% profit distributions to the State, with WAF entitled to repatriate its remaining share.
