Burkina Faso tells Australian miner it wants 40% stake in gold mine after company projects up to 490,000 ounces in 2026

Burkina Faso has told West African Resources Limited it plans to raise its stake in the Kiaka gold mine to 40%, up from 15%, in a move that comes as the Australian-listed producer projects a sharp increase in output from its West African operations.

• Burkina Faso plans to increase its stake in the Kiaka gold mine from 15% to 40% via a government decree, reshaping the mine's ownership structure.
• Kiaka is a key gold project expected to produce 240,000 to 280,000 ounces annually, underpinning West African Resources' target of up to 490,000 ounces in 2026.
• This move reflects a broader trend of resource nationalism in Africa, as governments seek greater control and revenue from strategic mining assets.
• Despite uncertainty from the proposed ownership change, West African Resources anticipates strong production growth and plans further exploration investments.

The proposed increase, set out in a government decree, could reshape ownership of one of the country’s most strategic gold assets, with Kiaka expected to underpin production of between 430,000 and 490,000 ounces in 2026.

The development triggered a trading halt in West African Resources’ shares on the Australian Securities Exchange on Friday, as investors assessed the potential impact of a larger state stake on future earnings and control of the project.

State tightens grip on strategic gold asset

Authorities in Burkina Faso are moving to tighten state control over the mining sector, lifting their stake in the Kiaka gold mine to 40% through a decree adopted by the Council of Ministers.

The measure gives the government an additional 25% interest in KIAKA SA, the operator of the mine, and marks a shift in ownership of one of the country’s key gold assets.

Kiaka, located in the Centre-Est region and spanning about 54 square kilometres, began production in June 2025.

It is currently 85% owned by West African Resources Limited, with the state holding the remaining 15%.

Decree formalises long-signalled policy shift

The move follows earlier signals under mining legislation introduced in 2024 that the government would seek to expand its stake, with compensation.

A draft decree covering the additional interest is expected to formalise that position.

West African Resources has described the transaction as “potential”, with no details disclosed on negotiations or valuation.

Trading halt reflects investor caution

The company said the trading halt was necessary to “ensure orderly trading and an informed market” as it prepares further disclosures.

The miner’s outlook remains closely tied to global gold prices, which have been supported by inflation and geopolitical tensions, although higher interest rates and a stronger U.S. dollar continue to weigh on sentiment.

Resource nationalism gathers pace

The move highlights a broader trend across Africa, where governments are seeking to secure a larger share of revenues from natural resources.

Burkina Faso has previously pushed for increased ownership. Since August 2025, it has signalled interest in raising its stake in Kiaka to as much as 50%, following an earlier increase from 10% to 15% at no cost.

West African Resources had previously valued a 5% stake increase at $33.4 million.

Strong output outlook despite uncertainty

Despite the policy overhang, West African Resources is entering a period of strong production growth.

Business Insider Africa earlier reported that the company is targeting 430,000 to 490,000 ounces of gold in 2026, driven by the first full year of output from Kiaka alongside its Sanbrado mine.

Kiaka alone is expected to produce between 240,000 and 280,000 ounces, cementing its role as a key contributor to Burkina Faso’s industrial gold output.

The company is targeting all-in sustaining costs below $1,900 per ounce, pointing to solid margins even amid price volatility.

Chief executive and chairman Richard Hyde described 2026 as a “landmark year”, with potential shareholder returns including dividends and a share buy-back under consideration.