Burkina Faso is rewriting the rules of engagement in its gold sector, signaling a clear shift toward greater national control and benefit. Under a new mining law that came into effect in August 2024, the West African country has increased its free-carried equity stake in all major mining projects from 10% to 15%, ensuring it earns more from its most valuable natural resource—without investing a single dollar.
This move, described by some analysts as both bold and overdue, directly impacts key projects like Sanbrado, Kiaka, and Toega, operated by Australian firm West African Resources (WAF). The company, which has become a major player in Burkina Faso’s mining scene, has agreed to the new terms after constructive talks with the government and other stakeholders.
This isn’t just about numbers. It’s about shifting the balance of power in a sector long dominated by foreign investors. For decades, companies from Canada, the UK, and Australia have controlled the lion’s share of gold production in Burkina Faso. While these companies brought in investment and technical know-how, only a fraction of the profits stayed in the country.
President Captain Ibrahim Traoré, who took power in 2022, has made it clear that things must change.
“Our resources must first benefit our people,” Traoré said at a recent press briefing. “We can no longer afford to stand on the sidelines while others walk away with our wealth.”
True to that vision, the new Mining Code gives Burkina Faso a bigger seat at the table—without requiring any upfront investment in mining operations. This 15% free-carried interest means the government automatically gets a share of profits, royalties, and dividends without sharing the risks or costs of exploration and development.
Despite the potentially contentious nature of the reform, West African Resources welcomed the updated terms.
“Our 2025 guidance remains unchanged,” said WAF Chairperson Richard Hyde, emphasizing that the company still expects to produce 190,000 to 210,000 ounces of gold this year, at an all-in sustaining cost below $1,350 per ounce. He added that construction at the Kiaka project is progressing well, with the first gold pour expected in Q3 2025.
Importantly, aside from the equity stake adjustment, all other terms of existing mining agreements remain the same—providing reassurance to investors and local partners alike.
Also, read: Burkina Faso Grants New Gold Mining Licence To Russian Firm
Gold is not just a shiny metal in Burkina Faso—it’s the backbone of the economy. The country now ranks fourth in Africain gold output, behind Ghana, South Africa, and Sudan. It accounts for more than 70% of the nation’s export earnings, making it the single most valuable commodity Burkina Faso exports.
But until now, the local impact has been minimal. Most of the wealth has flowed outward, through profit repatriation, leaving local communities with limited employment and infrastructure development. That’s the gap this reform hopes to close.
Burkina Faso’s new mining policy isn’t happening in a vacuum. It reflects a broader continental movement—from DR Congo to Zambia to Tanzania—to renegotiate mining contracts, boost transparency, and ensure resource sovereignty for African nations.
Analysts see Burkina Faso’s approach as firm but balanced: rather than nationalizing assets, it is carving out a fairer share for the state while still keeping the door open to international investors.
What’s Next?
• The government will now receive 15% of profits from all major mining projects.
• Other mining firms operating in Burkina Faso are expected to fall in line with the revised code.
• Citizens and communities may begin to feel a stronger economic impact from gold mining, though effective oversight remains key.
As the dust settles on this historic shift, one thing is clear: Burkina Faso is no longer content with being a resource-rich country that earns poor rewards. With gold in the ground and determination in its policy, the nation is taking steps to ensure its people see more of the benefits.
