Burkina Faso has clarified that its request for a larger share in West African Resources’ Kiaka gold project is not an order but an invitation for participation – www.naijnaira.com reports.
At the Africa Down Under conference in Perth, Mamadou Sagnon, head of the mining registry, explained that the revised Mining Code introduced in July 2024 raised the state’s free interest from 10% to 15%, while also allowing the government or local investors to buy extra shares if agreed commercially, according to Creamer Media.
He told delegates, “In the case of West African Resources, the government addressed a letter to solicit the opening of participation up to 35%. For the moment, it is a solicitation – it is not forcing.”
The reassurance came after growing concerns that rising state involvement across West Africa could deter global investors.
Sagnon argued that state participation would instead improve stability and encourage companies to commit long-term.
West African Resources confirmed that discussions with authorities are ongoing, with its sustainability chief Mirey Lopez noting, “We are in dialogue with the government and we are looking forward to a resolution.”
The company’s shares remain suspended on the ASX while negotiations continue.
The Kiaka gold mine has just moved into production and is expected to yield roughly 234,000 ounces of gold per year over the next two decades.
Last week, West African Resources said all its mines, including Sanbrado, Kiaka, and Toega, had been adjusted to the new 15% state shareholding rule.
The miner also disclosed that Burkina Faso has made the annual dividend requirement for the state compulsory.
Somisa, the subsidiary managing Sanbrado, already paid a priority dividend of $98.35 million in August, equivalent to 15% of its retained earnings under regional OHADA rules.
The company added that all three operations—Somisa, Kiaka SA, and Toega SA—would now pay yearly 15% profit distributions to the government, while retaining rights to repatriate the balance.
Article updated 1 month ago. Content is written and modified by multiple authors.
