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.
Australian gold producer West African Resources Limited suspended trading in its shares on the Australian Securities Exchange on Friday, as investors weighed a government move in Burkina Faso that could significantly reshape ownership of one of West Africa’s largest gold projects.
The trading halt, requested by the company, will remain in place until the earlier of a market update or April 21, 2026, as it prepares to respond to a decree by the government of Burkina Faso that could lift the state’s stake in the Kiaka gold mine to 40%.
State tightens grip on strategic gold asset
Burkina Faso’s move follows a recent decision, under a military-led government headed by Captain Ibrahim Traoré, to expand state control over the mining sector through a decree adopted by the Council of Ministers, in line with mining legislation introduced in 2024.
The proposed 40% stake builds on signals since August 2025 that the government intends to raise its interest in the Kiaka gold mine to as much as 50%, after increasing its holding from 10% to 15% at no cost.
At the time, West African Resources Limited had valued a 5% stake increase at $33.4 million.
The Kiaka gold mine, located in the Centre-Est region and covering about 54 square kilometres, began production in June 2025 and is currently 85% owned by the Australian miner, with the state holding the remaining 15%.
Trading halt reflects investor caution
Following the latest demand, West African Resources Limited 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.
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.
