Burkina Faso’s Ministry of Mines has formally requested that Australian-listed mining company West African Resources (WAF) cede a 40% ownership stake in the Kiaka gold project to the state, according to a letter dated April 22 and reviewed by NowInAfrica.
The demand, which WAF has 30 days to respond to, applies to the Kiaka permit area covering 536 square kilometres in the Bam province — one of the most significant gold discoveries in West Africa in the past decade. WAF estimates the project holds proven and probable reserves of approximately 6.5 million ounces of gold.
Part of a Broader Shift
The Kiaka ultimatum follows Burkina Faso’s nationalisation of the SOFITEX cotton company just days earlier and mirrors similar actions by neighbouring Niger, which nationalised its oil and mining sectors in early 2026. Colonel Moussa SedGo, speaking at a press conference in Ouagadougou, said the government was “determined to ensure the people of Burkina Faso benefit directly from their mineral wealth.”
Under the proposed framework, Burkina Faso would receive its 40% stake at no cost, funded through a special mining reserve account. WAF would retain operational management for an initial five-year period, after which the state stake could be increased to a majority position.
WAF shares fell 8.3% on the Australian Securities Exchange following news of the demand. The company said in a market filing it was “engaging constructively with the government” but declined to comment on the specific terms.
Wider Implications for Mining Investment
The demand arrives at a sensitive time for West Africa’s mining sector, which has attracted billions in foreign investment over the past decade. Burkina Faso itself has been one of the continent’s fastest-growing gold producers, with output reaching 2.1 million ounces in 2025 — a tenfold increase over 2015 levels.
Regional rivals Ghana and Senegal, which maintain more conventional production-sharing arrangements, may find themselves caught between investor concerns about regulatory instability and domestic pressure to replicate Burkina Faso’s assertiveness.
Industry body the West African Mining Association warned that “unilateral changes to established fiscal frameworks risk chilling investment across the sub-region.” Several major gold producers, including Barrick Gold and Endeavour Mining, have significant West African operations that could face similar pressure.
Burkina Faso’s total gold exports reached $3.8 billion in 2025, making mining the single largest contributor to the country’s foreign exchange earnings and government revenue.