Burkina Faso has agreed to pay about US$125 million (70 billion CFA francs) to acquire an additional 25 percent stake in the Kiaka gold mine, strengthening state control over one of its key mining assets as the government implements a revised mining code aimed at increasing public revenue from natural resources.
The agreement, announced Tuesday by Australian operator West African Resources (WAF), will raise the state’s ownership in the mine to 40 percent, up from 15 percent. The Kiaka project, which entered production in June 2025, is currently 85 percent owned by WAF, with the remaining share held by the Burkinabe state through its mining agency.
The transaction follows months of negotiations and has been authorized by a government decree, WAF said, clearing uncertainty over the state’s intention to expand its participation in the project. The company expects the deal to be completed by the end of 2026, after finalisation of terms with the state mining company SOPAMIB.
“Publication of the decree removes uncertainty regarding the government’s interest in Kiaka,” WAF chief executive Richard Hyde said, adding that proceeds from the sale will be returned to shareholders as a special dividend.
The Kiaka expansion is one of the first major applications of Burkina Faso’s revised 2024 Mining Code, which gives the state greater rights to increase equity stakes in strategic mining projects. Authorities have argued that deeper participation is necessary to ensure a larger share of revenues from the country’s growing gold sector.
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The move comes as Burkina Faso seeks to maximise returns from gold, its most important export commodity, amid rising production. Kiaka is expected to produce up to 280,000 ounces of gold this year, equivalent to about 8.7 metric tons, representing roughly 16 percent of national industrial gold output, estimated at 52 metric tons in 2025.
With the increased stake, the government will gain a stronger position in dividend flows from the mine, adding to fiscal revenues at a time when many West African economies are under pressure to fund security and development spending.
WAF also operates the Sanbrado gold mine in Burkina Faso and is developing the Toega satellite deposit linked to that operation. The company confirmed that those assets are not subject to additional state participation requirements under the current framework.
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Analysts say Burkina Faso’s approach reflects a broader regional trend of governments seeking greater control over mining revenues, particularly in gold-rich countries where prices have remained elevated and production is expanding.
While the policy shift is expected to boost state income in the short term, investors are watching closely for potential implications on long-term investment sentiment and operational certainty in the country’s mining sector.
