West African Resources confirms mining permits not in peril

WEST African Resources (WAF) said on Tuesday it had received assurance from the Burkina Faso government that its mining licence would not be withdrawn.

This follows comments by Ibrahim Traore, Burkina Faso’s interim president over the weekend in which he said the government would withdraw the mining permits of some foreign companies.

“We know how to mine our gold and I don’t understand why we’re going to let multinationals come and mine it,” Traore said in a radio address to mark two years since he seized power in a coup.

The company said it had been in contact with “government officials” who have informed the company Traore’s comments “were directed to those companies operating in violation of the laws of Burkina Faso”.

“Companies operating in compliance with the laws of Burkina Faso, which includes WAF and many other mining companies, will not have their mining permits withdrawn or revoked,” it added. Shares in the company recovered about 7.5% after losing 19.5% on Monday.

“WAF personnel have recently communicated directly with officials from the Ministry of Mines and Quarries in Burkina Faso who have confirmed that none of WAF’s mining permits are under review and all of them remain in good standing,” said Richard Hyde, the company’s CEO and executive chairman.

Burkina Faso has a vibrant gold sector with a number of mining companies operating there including Russia’s Nordgold, Canada’s Orezone Gold Corporation, and Endeavour Mining, a UK listed company said Reuters.

Endeavour said on Monday that it “… remains a trusted partner to the Government of Burkina Faso” and that it was “… not currently aware of any plans to revoke any of its mining permits”.

WAF also said today that it was on track towards meeting the upper end of its 2024 gold production guidance of 190,000 to 210,000 ounces. This was after mining 47,799 oz in the third quarter from its Sanbrado mine – six percent higher than the second quarter.