Burkina Faso's Nationalization Drive Shakes West African Gold Market

Burkina Faso’s nationalization rattles West Africa’s gold sector

Posted on September 8, 2025 by Nanthakumar Victor Emmanuel, P.Eng Leave a comment

Workers at a mining site during sunset, with heavy machinery in the background and a mountainous landscape.

Burkina Faso is accelerating its drive to nationalize natural resources, requesting this week to acquire another 35% of West African Resources’ (ASX: WAF) Kiaka gold mine — a move that forced the miner into a trading halt on Thursday.

The company said the government wants to raise its stake in Kiaka, which poured first gold in June, “for valuable paid consideration”. It added the trading should resume Monday.

WAF has grown from a struggling explorer into one of West Africa’s biggest success stories, producing about 500,000 ounces of gold a year at low cost. The company says it has already paid hundreds of millions of dollars in taxes and royalties to Burkina Faso, with revenues expected to reach the billions once Kiaka ramps up.

Orezone Gold (ASX, TSX: ORE), which operates the Bomboré mine, also halted trading after the news. The company said it has received no similar request from the government but plans to meet with officials this weekend.

The development highlights the fragile investment climate in West Africa, already rattled by political instability in Mali.

Burkina Faso, Africa’s fourth-largest gold producer, has added key assets to the portfolio of its new state-owned miner, Société de Participation Minière du Burkina (SOPAMIB).

New ‘safe’ destinations

For foreign miners, the upheaval underscores how quickly long-term agreements can collapse. Countries such as Ghana, Egypt, Namibia and Botswana continue to offer more predictable frameworks, while Côte d’Ivoire and Guinea are emerging as new magnets for investment.

Rio Tinto’s (ASX, LON: RIO) multibillion-dollar Simandou iron ore project highlights growing confidence in Guinea’s commitment to the rule of law.

Yet the risks remain high. Success in much of Africa often depends on global majors with world-class mines, diversified portfolios and close government ties. Canada’s Barrick Mining (TSX: ABX)(NYSE: B) continues to navigate these challenges in Mali, but smaller players such as WAF now face sharper uncertainty.