West African Resources Limited and Burkina Faso are navigating a careful middle ground between increased state ownership and private sector investment, demonstrating that dialogue remains possible despite a climate of assertive resource nationalisation.
Minutes from the February 19, 2026 meeting of Burkina Faso’s Council of Ministers indicate that authorities are reviewing a draft decree that would allow the state to acquire an additional 25% stake in Kiaka SA, the company developing the Kiaka gold project. The move is intended to satisfy the legal requirement for ministerial approval tied to changes in ownership.
The process is being coordinated by Société de Participation Minière du Burkina Faso (SOPAMIB), the government’s mining investment arm, signalling a negotiated rather than confrontational approach. West African Resources Limited (WAF), which is listed on the Australian Securities Exchange, has taken part in the talks, aiming to ensure that any expansion of state ownership remains aligned with the interests of shareholders and project financiers.
Beyond Kiaka, SOPAMIB has expressed its intention to collaborate with WAF on upcoming mining ventures that could deepen national participation, generate jobs, and increase the broader economic benefits derived from Burkina Faso’s mineral wealth. Notably, WAF’s other assets Sanbrado and Toega were excluded from the current discussions, suggesting that negotiations are targeted specifically at Kiaka.
Kiaka SA, which oversees the Kiaka Gold Project, is majority-owned by WAF with a 90% interest as of late 2021, while the Burkina Faso government holds the remaining 10%. WAF Executive Chairman and CEO Richard Hyde welcomed what he described as constructive engagement with the authorities.
He said discussions around Kiaka’s ownership structure and potential cooperation on future developments reflect a shared goal of building a resilient mining sector that benefits citizens and delivers sustainable returns to stakeholders. He also confirmed that operations at Sanbrado and Kiaka have continued without disruption during the engagement process.
These developments come amid a broader shift in Burkina Faso’s natural resource strategy. Since the September 2022 coup that brought Ibrahim Traore to power, the government has moved to consolidate gold trading under state-linked entities, restrict artisanal gold exports to curb smuggling, and promote domestic processing capacity.
A high-profile dispute between Endeavour Mining Plc and Lilium Mining, resolved in August 2024, highlighted this policy direction. The settlement resulted in the transfer of certain mining assets to the state, with Burkina Faso agreeing to pay Endeavour $60 million and a 3% royalty on up to 400,000 ounces of production from the Wahgnion mine.
In 2025, the government also advanced reforms to increase its equity participation in mining ventures, raising the free-carried interest from 10% to 15% under the revised 2024 Mining Code. By August that year, WAF had adopted the updated legislation, reflecting the higher state stake in its key projects Sanbrado (Somisa), Kiaka, and Toega as disclosed in its interim financial report for the six months ending June 2025.
Burkina Faso’s mining industry delivered strong results in 2025, with gold output reaching a record 94 tonnes, according to figures released by the Minister of Energy, Mines and Quarries, Yacouba Zabré Gouba.
