West African Resources and Burkina Faso: Negotiating Ownership in a New Era of Resource Nationalism
West African Resources Engages Burkina Faso on 25% Kiaka Stake as Government Expands Mining Sector Control
West African Resources Limited (WAF) and Burkina Faso are navigating a complex but constructive path as the government advances policies aimed at increasing state participation in strategic mining assets.
Despite a broader trend toward resource nationalism, both parties are demonstrating that structured negotiation remains viable.
According to minutes from the Council of Ministers’ meeting held on February 19, 2026, the government is reviewing a draft decree that would enable it to acquire an additional 25% equity stake in Kiaka SA, the company operating the Kiaka Gold Project.
The proposed transaction is intended to meet statutory requirements for ministerial approval under the country’s mining legislation.
Discussions are being coordinated by Société de Participation Minière du Burkina Faso (SOPAMIB), the state’s mining investment arm.
Both SOPAMIB and WAF have adopted a collaborative stance, working to ensure that any increase in government ownership aligns with the financial interests of existing shareholders and project financiers.
Importantly, the talks are limited to Kiaka SA. WAF’s Sanbrado and Toega operations are not part of the current negotiations, signaling a targeted and structured approach rather than a blanket restructuring of mining assets.
Ownership Structure and Operational Stability
Kiaka SA is majority-owned by WAF, which held a 90% interest as of late 2021, while the State of Burkina Faso retained a 10% stake under the country’s free-carried equity framework.
WAF Executive Chairman and CEO Richard Hyde emphasized the constructive nature of the engagement:
“We appreciate the constructive engagement and continued support of the Government of Burkina Faso.
Our discussions regarding the ownership structure of Kiaka and potential cooperation on new projects reflect a shared vision to develop a strong and sustainable mining industry that benefits the Burkinabé people while delivering long-term value for all stakeholders.”
Hyde also confirmed that operations at Sanbrado and Kiaka have continued uninterrupted throughout the discussions, underscoring operational stability during the policy transition
Burkina Faso’s Expanding State Role in Mining
The current negotiations occur against a backdrop of increasingly assertive state intervention in the mining sector.
Since the September 2022 coup that brought Ibrahim Traoré to power, Burkina Faso’s transitional government has implemented reforms designed to consolidate national control over gold production and trade.
Key measures have included:
-Centralizing gold purchases through state-linked entities
-Restricting artisanal gold exports to curb smuggling
-Announcing plans to expand domestic gold processing capacity
A landmark dispute involving Endeavour Mining Plc and Lilium Mining, concluded in August 2024, further illustrated this shift.
Under the settlement terms, ownership of certain mines was transferred to the Burkinabé state.
In return, Burkina Faso agreed to pay Endeavour Mining US$60 million and a 3% royalty on up to 400,000 ounces of gold produced from the Wahgnion mine.
The 2024 Mining Code and Increased State Equity
In 2024, Burkina Faso updated its Mining Code, increasing the government’s free-carried equity in mining operations from 10% to 15%.
By August 2025, West African Resources formally adopted the revised framework, with the adjustment reflected in its interim financial report for the six months ending June 2025.
The equity changes were completed in July and August 2025 across WAF’s three principal assets:
-Sanbrado (Somisa)
-Kiaka
-Toega
This structured compliance demonstrates WAF’s willingness to operate within the evolving regulatory framework while maintaining project continuity.
Strong Production Performance
Despite policy shifts, Burkina Faso’s mining sector delivered robust results in 2025. National gold production reached a record 94 metric tons, according to figures released by the Minister of Energy, Mines and Quarries, Yacouba Zabré Gouba.
The performance highlights the sector’s resilience and its continued centrality to the national economy.
A Pragmatic Model Amid Resource Nationalism
The Kiaka negotiations illustrate a pragmatic balance between state participation and private capital.
Rather than abrupt expropriation or unilateral restructuring, the government appears to be pursuing a legally grounded, negotiated path toward increased ownership.
For investors and industry observers, the key takeaway is not merely the expansion of state equity, but the method by which it is being pursued: through formal decrees, structured dialogue, and operational continuity.
In a regional environment where resource nationalism often generates volatility, the engagement between West African Resources and Burkina Faso suggests that cooperative frameworks remain possible even amid assertive policy reform.
