Burkina Faso Seeks 40% Stake in Gold Project, as Output Set to Surge

By Al Mayadeen English

19 Apr 2026 09:17

Burkina Faso demands a 40% stake in the Kiaka gold mine, prompting West African Resources to halt trading.

Burkina Faso’s government has moved to significantly expand its ownership of a major gold project, requesting a 40% stake in the Kiaka mine operated by Australia’s West African Resources Limited, as the company projects strong production growth in 2026, Business Insider Africa reported.

The development prompted the miner to suspend trading of its shares on the Australian Securities Exchange on Friday, with the halt expected to remain in place until at least April 21 or until further market clarification is issued.

State expands control over mining sector

The move reflects a broader policy shift by Burkina Faso’s leadership under Captain Ibrahim Traore to increase state participation in strategic natural resources. According to the company, the request follows a government decree adopted by the Council of Ministers, aligned with mining legislation introduced in 2024 aimed at strengthening national control over the sector.

The proposed 40% stake builds on earlier indications that authorities could seek up to 50% ownership in the Kiaka project. The state previously raised its share from 10% to 15% at no cost, with West African Resources estimating that a 5% increase was worth $33.4 million at the time.

Kiaka, located in the Centre-Est region and spanning approximately 54 square kilometers, began production in June 2025. The project is currently 85% owned by the Australian firm, with the remaining 15% held by the state.

Trading halt, production outlook

West African Resources stated that the trading suspension was necessary to “ensure orderly trading and an informed market” as it evaluates the implications of the government’s demand. Investor sentiment remains sensitive to both regulatory changes and broader macroeconomic factors, including global gold price movements. Prices have been supported by inflationary pressures and geopolitical tensions, though higher interest rates and a stronger US dollar continue to weigh on markets.

Despite the uncertainty surrounding ownership, the company is entering a phase of accelerated output. West African Resources is targeting annual production of between 430,000 and 490,000 ounces of gold in 2026, driven by the first full year of operations at Kiaka alongside its Sanbrado mine.

Kiaka alone is expected to contribute between 240,000 and 280,000 ounces, reinforcing its position as a cornerstone of Burkina Faso’s industrial gold sector. The company also aims to maintain all-in sustaining costs below $1,900 per ounce, suggesting resilient margins despite potential volatility in global 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 buyback, are under consideration.