Faith Nyasuguta
Burkina Faso has taken a bold step to claim a larger share of its gold wealth by increasing the government’s free-carried equity in major mining projects from 10% to 15%. The move, implemented under the country’s newly revised Mining Code adopted in August 2024, is set to significantly boost state revenues without raising operational costs or disturbing existing contractual terms.
This reform applies to key projects such as Sanbrado, Kiaka, and Toega, operated by Australia-listed West African Resources. The company has agreed to the revised ownership terms after consultations with government and industry leaders. All other elements of its existing agreements with Burkina Faso will remain unchanged.
“This change strengthens our partnership with the government while allowing our operations to continue without disruption,” said Richard Hyde, Chairperson of West African Resources. He added that construction at the Kiaka gold project remains on schedule and within budget, with the first gold pour anticipated early in the third quarter of 2025.
Burkina Faso is Africa’s fourth-largest gold producer, trailing only Ghana, South Africa, and Sudan. Gold accounts for more than 70% of the country’s export revenues, making it a vital pillar of the national economy. Despite its wealth in natural resources, Burkina Faso has long struggled to retain value from its mining industry, with foreign companies historically dominating the sector.
Since taking power in 2022, President Captain Ibrahim Traore has pushed for greater national control over the country’s resources. His administration argues that Burkinabe citizens deserve a bigger share of the profits from the minerals extracted from their land. The new Mining Code reflects this ambition, ensuring that the government gets a larger, cost-free stake in mining operations.
“The resources beneath our soil belong first and foremost to our people,” Traore has said on several occasions, framing the mining reforms as a critical step in reclaiming economic sovereignty.
The new law is part of a wider movement across Africa aimed at rebalancing power in resource-rich sectors traditionally dominated by international firms. In many cases, foreign investors have earned massive profits while local communities and governments have seen minimal returns.
Now, with the 2024 Mining Code in place, mining companies operating in Burkina Faso are required to grant the state a 15% free-carried interest. This means the government will receive a larger share of revenue without making any capital investments in the mining projects.
West African Resources says it remains committed to working with the government under the new rules and believes the changes will ultimately benefit all parties involved.
As the country continues to implement these reforms, many see it as a critical moment in Burkina Faso’s journey toward fairer, more inclusive resource management, and a potential model for other African nations navigating the balance between foreign investment and national interest.
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