Burkina Faso Seeks 40% Stake in Australian Gold Mine

Burkina Faso has informed Australian miner West African Resources Limited of plans to increase its stake in the Kiaka gold mine to 40 per cent, up from 15 per cent, in a move that could significantly alter the ownership structure of one of West Africa’s largest gold projects.

The proposed increase, expected to be implemented through a government decree, reflects a broader push by the country’s authorities to strengthen state control over strategic mining assets.

Kiaka is a major gold development expected to produce between 240,000 and 280,000 ounces annually, forming a key pillar of West African Resources’ target of up to 490,000 ounces of gold production in 2026.

West African Resources suspended trading in its shares on the Australian Securities Exchange on Friday as investors assessed the potential impact of the government’s move.

The trading halt, requested by the company, will remain in place until the earlier of a market update or 21 April 2026, as it prepares a formal response to the decree.

Burkina Faso’s decision follows a broader policy shift under the military-led administration of Captain Ibrahim Traoré, aimed at increasing state participation in the mining sector. The move is in line with reforms introduced under the country’s 2024 mining legislation.

The proposed 40 per cent stake builds on earlier indications, dating back to August 2025, that the government intended to raise its interest in Kiaka to as much as 50 per cent. This followed an increase in its holding from 10 per cent to 15 per cent at no cost.

At the time, West African Resources valued a 5 per cent stake at approximately $33.4 million, an online platform reported.

The Kiaka mine, located in the Centre-Est region and spanning about 54 square kilometres, commenced production in June 2025. It is currently 85 per cent owned by the Australian miner, with the Burkinabè state holding the remaining 15 per cent.

The company said the trading halt was necessary to “ensure orderly trading and an informed market” while it prepares further disclosures.

Despite the uncertainty surrounding the proposed ownership changes, West African Resources is entering a period of robust production growth.

The company is targeting total gold output of between 430,000 and 490,000 ounces in 2026, supported by the first full year of production from Kiaka alongside its Sanbrado mine.

Kiaka alone is expected to deliver between 240,000 and 280,000 ounces, underlining its strategic importance to both the company and Burkina Faso’s mining sector.

West African Resources is also aiming to keep all-in sustaining costs below $1,900 per ounce, suggesting the potential for solid margins even amid fluctuations in global gold prices.

Chief Executive and Chairman Richard Hyde described 2026 as a “landmark year” for the company, adding that shareholder returns — including dividends and a potential share buy-back — are under consideration.

Burkina Faso’s move highlights a growing trend of resource nationalism across parts of Africa, where governments are seeking to secure a larger share of revenues from mineral wealth.

While such policies may boost state income, they can also introduce uncertainty for investors, particularly in capital-intensive sectors such as mining.

Even so, West African Resources appears confident in its growth trajectory, with plans to continue exploration and development across its West African portfolio despite the evolving regulatory landscape.