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Burkina Faso’s largest gold producer and one of its most significant foreign investors, West African Resources (WAF), has implemented the revised 2024 mining code by increasing the government’s free carried equity stake in its gold projects from 10% to 15%.
The change was reflected in the company’s interim financial report for the six months to end-June 2025.
WAF’s executive chairman, Richard Hyde, confirmed that the equity adjustment was completed in July and August across its three key projects which are Sanbrado (Somisa), Kiaka, and Toega mines.
According to Hyde, “This 5% equity transfer to the State for nil proceeds has been recorded in the consolidated statement of changes in equity as an A$33.4 million decrease in retained profits and a matching increase in non-controlling interest in the half year.”
Hyde further noted that in future years, each of the subsidiaries will pay the State a priority dividend equal to 15% of annual company profits, with WAF retaining and repatriating its 85% share according to available free cash flow.
The revised arrangement, which mandates both higher equity participation and a compulsory annual dividend to the state, has significantly strengthened Burkina Faso’s mining revenues.
For the government in Ouagadougou, the move marks a major fiscal gain at a time when gold is the country’s most vital export and principal source of foreign currency.
Mining gains bolster state finances
Burkina Faso is increasingly reliant on large-scale gold production as its main source of export revenue, with industrial output projected to rise by 4% to 55.7 tons this year, according to Aristide Belemsobgo, director general of mines and geology at the Ministry of Energy, Mines and Quarries.
The boost comes at a crucial moment for Captain Ibrahim Traoré’s administration, which needs additional funds to confront a worsening Islamist insurgency after severing ties with many Western partners and strengthening its alliance with Russia.
The fiscal outlook is further buoyed by record-high global gold prices, which are enhancing the government’s financial position amid growing security pressures. West African Resources (WAF), the country’s largest gold operator, remains central to this strategy.
Despite its equity stake being reduced from 90% to 85% under the revised mining code, WAF controls 6.5 million ounces of reserves across Sanbrado, Kiaka, and Toega.
The company projects average annual output of 480,000 ounces over the next decade, with production peaking at 569,000 ounces in 2029. Output is already set to rise 40% this year, supported by ongoing exploration, including 25,000 meters of drilling at Sanbrado’s M5 target.
For Ouagadougou, increased state earnings promise stronger public finances, support for social programs, and vital funding for security operations, underscoring a broader Sahel trend of reclaiming greater control over natural resources.
