Burkina Faso Increases Stake in West African Resources’ Gold Projects Under New Mining Code
Burkina Faso’s largest gold producer and one of its biggest foreign investors, West African Resources (WAF), has implemented the revised 2024 mining code, raising the government’s free carried equity in its gold projects from 10% to 15%.
The adjustment was confirmed in WAF’s interim financial report for the first half of 2025.
WAF executive chairman Richard Hyde said the equity transfer was finalized in July and August across its three key projects: Sanbrado (Somisa), Kiaka, and Toega.
“This 5% equity transfer to the State for nil proceeds has been recorded in the consolidated statement of changes in equity as an A$33.4 million decrease in retained profits and a matching increase in non-controlling interest,” Hyde explained.
Under the new framework, subsidiaries will also pay the State a priority dividend equal to 15% of annual company profits, while WAF will retain 85% of distributable cash flow.
The reform significantly boosts Burkina Faso’s fiscal revenues at a time when gold remains the country’s largest export and most important source of foreign currency.
Industrial gold output is expected to rise by 4% to 55.7 tons in 2025, according to Aristide Belemsobgo, director general of mines and geology.
For Captain Ibrahim Traoré’s administration, the increase in state mining revenues is timely. The government is seeking additional resources to finance social programs and combat a growing Islamist insurgency after distancing itself from Western partners and deepening ties with Russia.
The fiscal outlook is further supported by record-high global gold prices, which are bolstering state coffers amid rising security costs.
Despite its equity share being reduced from 90% to 85%, WAF remains central to Burkina Faso’s mining strategy.
The company controls 6.5 million ounces of reserves and projects average annual production of 480,000 ounces over the next decade, with output peaking at 569,000 ounces in 2029.
Production is already set to rise 40% in 2025, supported by active exploration programs, including 25,000 meters of drilling at the Sanbrado M5 target.
For Ouagadougou, the revised mining code represents a broader Sahel-wide trend of reclaiming greater control over natural resources, while strengthening state revenues to support both economic development and national security.
