WEST African Resources (WAF) said on Tuesday it had submitted an alternative proposal to Burkina Faso in response to its request for more shares in Kiaka, the Australian gold miner’s recently commissioned 220,000 ounce a year mine.
In August, Burkina Faso said it wanted to acquire a further 35% in Kiaka after earlier exercising an option to increase its free carried stake to 15% from 10%.
“WAF submitted a proposal to the Government to increase both national participation and Government revenue from the development of new and previously closed mining projects in Burkina Faso, as an alternative to purchasing a further equity interest in the Kiaka project,” the company said in a statement.
Richard Hyde, executive chairman and CEO of West African said discussions “reflected a shared vision” for stable mining with stakeholder benefits”. It appears, however, as if the company has not completely dismissed Burkina Faso’s request for more shares in Kiaka.
“Operations at Sanbrado and Kiaka have remained unaffected throughout this engagement with the government,” Hyde added. “We remain on track to achieve group production guidance of 290,000 to 360,000 oz gold in [the] 2025 [calendar year].”
Kiaka is an important element in West African’s ambitions to become a 500,000 oz/year gold producer by 2030. West African’s Sanbrado and Toega had not been part of these discussions with Burkina Faso, the company said.
On September 1, shares in West African Resources were suspended from the Australian Securities Exchange but were about 18% lower for the month prior.
Burkina Faso’s demands reflect a broader increase in resource nationalism in West Africa. Barrick Mining this week dropped its two-year opposition to Mali’s 2023 Mining Code in return for operating control of the Loulo-Gounkoto mine out of administration, as well as the release of employees from detention.
Senegal recently said it was planning an imminent change to its mining code. Citing President Bassirou Diomaye Faye, Bloomberg News said the country will likely adopt a new mining law as early as the year-end.
Endeavour Mining CEO Ian Cockerill said mining code and fiscal changes aimed at extracting higher rents from mining, amid record-breaking gold prices, were a likelihood. “If you are asking me what is the trajectory [of mining code changes], I think it’s fair to say, like in all countries, [it] is likely to be higher, but over the longer term, on a timeline which I’m afraid at this stage I can’t actually define,” he said.
