Burkina Faso decree lifts state's Kiaka stake to 40%

Burkina Faso's government has published a decree authorising state-owned mining company SOPAMIB to acquire an additional 25% interest in Kiaka SA, the company that owns West African Resources' (WAF) Kiaka gold mine. The decree, dated 16 April 2026, lifts the state's total holding to 40% from 15%.

SOPAMIB will pay CFA70bn, about A$175m, for the additional stake. WAF, which requested a trading halt on the ASX while it assessed the decree, said it aimed to complete the transaction by the end of the year and would return the cash to shareholders as a special dividend. Its shares dipped slightly when trading resumed.

Executive chairman Richard Hyde said the publication of the decree removed uncertainty about the government's interest in the mine.

How it got here

The move follows months of negotiation. In August 2025 the government said it wanted up to 50% of Kiaka, having already exercised an option to raise its free-carried interest from 10% to 15%. WAF proposed an alternative in which the state would take larger stakes in new projects and previously closed mines, but the Council of Ministers approved the acquisition in February and the decree followed in April. WAF's Sanbrado mine and its Toega deposit are not covered.

The decision applies the logic of Burkina Faso's 2024 mining legislation, under which the military government led by Captain Ibrahim Traoré has sought greater state ownership of producing mines and revived SOPAMIB as a vehicle for it.

An asset worth fighting over

Kiaka, in the Centre-Est region, began production in June 2025. It produced 65,704oz in the first quarter of 2026 and is guided to 240,000oz to 280,000oz this year, more than half of WAF's group forecast of 430,000oz to 490,000oz. The company's longer-term aim is to sustain about 500,000oz a year by 2029.

At gold prices well above $4,000/oz, the extra 25% entitles the state to a substantial share of Kiaka's future cash flow. For WAF, the outcome is less punitive than the 50% originally sought, and the payment gives it cash to distribute. But it cuts the company's exposure to its biggest growth asset to 60% from 85%.

Regional pattern

Burkina Faso's approach mirrors Mali's 2023 mining code, which lets the state hold up to 35% of a mine including 5% reserved for local investors, and reflects a wider push by Sahel governments to capture more value from the gold boom. The difference at Kiaka is that the state is paying for its additional stake rather than simply imposing it, which may reassure investors weighing new projects in the country.

Sources

• Mining Weekly: Burkina Faso government publishes decree to acquire 25% of Kiaka SA, 21 Apr 2026
• Miningmx: Burkina Faso compels West African to give up more of Kiaka, 21 Apr 2026
• Business Insider Africa: Burkina Faso tells Australian miner it wants 40% stake in gold mine after company projects up to 490,000 ounces in 2026, 18 Apr 2026
• Ecofin Agency: Barrick Confirms Gold Production Restart at Mali's Loulo-Gounkoto Mine in 2026, 06 Feb 2026

Photo: Entrance to Tenkodogo, the capital of Burkina Faso's Centre-Est region, where the Kiaka gold mine is located. Christian COSTEAUX from FRANCE, Wikimedia Commons, CC BY 2.0.