Burkina Faso increases state ownership in gold projects as new mining law takes effect
Burkina Faso has officially increased its free-carried equity stake in key gold mining projects from 10% to 15%, aligning with the provisions of its new Mining Code adopted in August 2024.
This adjustment affects several high-profile assets, including the Sanbrado, Kiaka, and Toega projects operated by Australia-listed West African Resources.
The company agreed to the new terms after talks with the government and other key players in the mining industry.
In simple terms, this new regulation means Burkina Faso will now earn a bigger slice of the gold profits from mines on its land, without having to spend a dime.
Mining Weekly reports that aside from the change to the State's equity interest, all other key terms of West African Resources' existing mining agreements with the Burkina Faso government 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 West African Resources Chairperson, Richard Hyde.
He added that construction at the Kiaka project is progressing on schedule and within budget, with the first gold pour expected early in the third quarter of this year.
Burkina Faso's mining sector reforms
Burkina Faso's status as a gold producer has grown significantly over the past two decades, making it one of Africa's leading gold-producing countries.
The nation ranks fourth in gold production after Ghana, South Africa, and Sudan. Gold is Burkina Faso's most valuable export, contributing over 70% of export earnings and serving as a cornerstone of its economy.
Since taking power in 2022, Captain Ibrahim Traoré has made resource sovereignty a core priority, insisting that Burkinabè citizens must benefit more from the country's gold wealth.
Under his leadership, the government adopted a new Mining Code in August 2024, raising the state's free-carried interest in mining projects from 10% to 15% to strengthen national control and revenue.
Captain Ibrahim Traoré's decision to reform Burkina Faso's mining laws was largely driven by a desire to reassert national control over a sector long dominated by foreign interests.
For years, foreign companies from Canada, Australia, and the UK have dominated Burkina Faso's gold sector, contributing capital and expertise but offering limited benefits to local communities.
Most profits have been repatriated, with only small portions retained through taxes and minimal state equity.
Under the revised 2024 Mining Code, all mining firms must now grant the state a 15% free-carried interest giving the government a larger, cost-free stake.
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