Burkina Faso Moves to Increase Stake in Fast-Growing Kiaka Gold Mine to 40%
Burkina Faso is intensifying its drive to secure greater control over its natural resources, with plans to increase its ownership stake in the highly successful Kiaka Gold Mine from 15% to 40%.
The move reflects the government’s broader strategy to expand state participation in the mining sector under the leadership of Captain Ibrahim Traoré. The initiative aligns with reforms introduced through the country’s 2024 Mining Code and subsequent decrees adopted by the Council of Ministers, aimed at ensuring a larger share of mining wealth remains within Burkina Faso.
Kiaka Emerges as a Major Gold Producer
The Kiaka Gold Project has rapidly established itself as one of Burkina Faso’s most promising mining operations. In November 2021, Canadian mining company B2Gold Corp. and its partner, GAMS-Mining F&I, sold a 90% interest in the project to Australian-listed West African Resources Limited (WAF), while the Government of Burkina Faso retained a 10% stake.
Development of the mine progressed swiftly, with construction completed during the second quarter of 2025. The project achieved a major milestone in June 2025 when it recorded its first gold pour, producing a gold bar weighing 5.7 kilograms, equivalent to 183.3 troy ounces.
West African Resources Executive Chairman Richard Hyde described the achievement as remarkable, noting that first gold production was achieved just three and a half years after the acquisition of the project.
“First gold at Kiaka is a major milestone for West African Resources and a key step towards our target of becoming a 500,000-ounce-per-year gold producer by 2030,” Hyde stated.
Located approximately 45 kilometres south of WAF’s Sanbrado Gold Mine, Kiaka began operational reporting in August 2025 and quickly demonstrated strong production performance.
According to company figures, the mine produced 95,155 ounces of gold during its initial production phase in 2025, processing approximately 3.9 million tonnes of ore at an average grade of 0.8 grams per tonne and achieving a recovery rate of 91.3%.
As operations expanded and processing activities ramped up during the third quarter of 2025, total annual production reached 148,946 ounces of gold from more than 6.6 million tonnes of ore processed at an average grade of 0.7 grams per tonne.
Government Pursues Greater Ownership
Burkina Faso’s efforts to increase its ownership in Kiaka gained momentum following the introduction of the country’s revised mining regulations.
In June 2025, West African Resources announced its intention to align the ownership structures of its Sanbrado, Kiaka and Toega projects with the requirements of the new Mining Code.
As part of this alignment process, the Burkina Faso government increased its free-carried equity interest in the operating subsidiaries controlling the three projects from 10% to 15%, reducing WAF’s shareholding from 90% to 85%.
The transfer had a notable financial impact on the company, with WAF reporting a reduction of approximately $33.4 million in retained earnings, matched by an increase in non-controlling interests.
The government’s ambitions did not stop there. In August 2025, authorities signaled their intention to acquire an additional 35% stake in the Kiaka operation through a paid equity purchase.
The proposal advanced further on February 19, 2026, when Burkina Faso’s Council of Ministers reviewed a draft decree authorizing the state to purchase an additional 25% shareholding in Kiaka SA, the company that operates the mine.
By April 2026, West African Resources confirmed it had received formal notification from the Burkina Faso government of its intention to raise its ownership stake in Kiaka from the previously agreed 15% to 40%.
A New Era for Resource Nationalism
The planned increase in state ownership represents one of the most significant developments in Burkina Faso’s mining sector in recent years and highlights the country’s growing commitment to resource nationalism.
Supporters of the policy argue that greater state participation will allow Burkina Faso to capture a larger share of revenues generated by its mineral wealth, creating opportunities for national development and economic transformation.
The announcement also drew significant attention from investors, prompting West African Resources to temporarily suspend trading of its shares on the Australian Securities Exchange while assessing the implications of the government’s proposal.
As negotiations continue, the outcome is expected to shape not only the future of the Kiaka Gold Mine but also the broader relationship between mining companies and governments across Africa’s resource-rich economies.
