Burkina Faso yesterday, announced plans to boost its ownership in the Kiaka gold mine from 15% to 40%, a significant shift that comes as West African Resources Limited, the Australian-listed gold producer, anticipates a substantial rise in output from its operations in the region.
The West African Resources Limited yesterday, suspended trading of its shares on the Australian Securities Exchange (ASX) as investors reacted to the government’s decision that could dramatically alter the ownership structure of one of West Africa’s largest gold mining projects. The trading halt, requested by the company, will remain effective until either a market update is provided or until April 21, 2026.
This move by Burkina Faso follows a recent decree from the military-led government under Captain Ibrahim Traoré, aimed at increasing state control over the mining sector in accordance with new mining legislation enacted in 2024.
The proposed increase to a 40% stake builds on indications since August 2025 that the government aims to elevate its interest in the Kiaka gold mine to as much as 50%. This follows an earlier increase in its holding from 10% to 15% at no cost to the state. West African Resources had estimated that this 5% stake increase was valued at approximately $33.4 million.
The Kiaka gold mine, situated in the Centre-Est region and spanning roughly 54 square kilometers, commenced production in June 2025. Currently, it is predominantly owned by West African Resources Limited, which holds 85%, while the state retains the remaining 15%.
In light of the latest developments, West African Resources stated that the trading suspension was essential to “ensure orderly trading and an informed market” as it prepares for further announcements.
The outlook for the miner is closely linked to global gold prices, which have been buoyed by inflation and geopolitical uncertainties. However, rising interest rates and a stronger U.S. dollar are posing challenges to market sentiment.
Despite these regulatory uncertainties, West African Resources is poised for a period of robust production growth. The company aims to produce between 430,000 and 490,000 ounces of gold in 2026, driven by the first full year of output from Kiaka along with its Sanbrado mine.
Kiaka alone is projected to yield between 240,000 and 280,000 ounces, solidifying its significance in Burkina Faso’s industrial gold production landscape.
The company is targeting all-in sustaining costs below $1,900 per ounce, indicating healthy profit margins even amid price fluctuations. Chief Executive and Chairman Richard Hyde has characterized 2026 as a “landmark year,” with potential returns for shareholders including dividends and a share buy-back under consideration.
By: Magdalene Agyeiwaa Sarpong