Canadian mining firm shifts investment focus to Guinea after Burkina Faso exit

Business Insider

06-05-2025

Canadian miner Fortuna Mining is shifting its focus to Guinea, marking a strategic realignment in West Africa following its exit from Burkina Faso.
Fortuna Mining is shifting its focus to Guinea after exiting Burkina Faso due to security risks and regulatory changes.
The company is exploring opportunities in Guinea's gold sector through site visits and engagement with local authorities.
West Africa's mining dynamics are changing, with countries like Burkina Faso, Mali, and Niger revising mining codes to increase state control.
Canadian miner Fortuna Mining is shifting its focus to Guinea, marking a strategic realignment in West Africa following its exit from Burkina Faso amid rising security risks and regulatory uncertainty.
CEO Jorge Ganoza disclosed the development to Reuters, noting that while Fortuna currently has no operations in Guinea, it is actively exploring opportunities in the country's gold sector through site visits and engagement with local authorities.
West Africa's shifting mining landscape
The move reflects how international miners are adapting to the shifting dynamics in West Africa.
Since 2020, Burkina Faso, Mali, and Niger have experienced military coups and are now revising their mining codes to increase state control over foreign-owned industrial mines.
In Mali, authorities have detained foreign executives and seized gold inventories amid tense negotiations with mining companies. In one notable case, Canadian miner Barrick Gold halted operations after the government confiscated three metric tons of gold worth approximately $245 million in January.
In Niger, the military government took control of a French-run uranium facility in December 2024, while Burkina Faso announced plans last month to tighten its grip on foreign-owned industrial mines in a bid to boost state revenues from natural resources.
Fortuna exited Burkina Faso last month by selling its Yaramoko gold mine to a private local firm for $130 million. While the sale reduces its gold output by about 70,000 ounces annually, Ganoza said the offer was compelling, given the mine's declining reserves and rising operational risks.
Security costs in Burkina Faso had ballooned to $7 million per year due to the jihadist threat, he added, and reached just $200,000 to $300,000 in other countries.
Fortuna's exit follows similar moves by other miners, including Endeavour Mining, which also pulled out of Burkina Faso last year.
Despite the risks in the region, Fortuna is increasing its global exploration and project development budget to $51 million in 2025, up from $41 million in 2024.