• West African Resources paid Burkina Faso A$100.35 million in 2025 taxes

• Payments rose 67% amid surging gold prices, higher royalty rates

• Burkina Faso seeks greater mining revenues as gold rally continues

Australian miner West African Resources (WAF) paid Burkina Faso A$100.35 million ($69.8 million) in 2025 in royalties and other production-related taxes, according to a financial report published on Jan. 28.

The amount represents a 67% increase from the A$59.9 million reported in 2024. The rise comes amid higher gold prices and recent fiscal reforms in the country. Gold prices climbed 67% over the year, driven by geopolitical tensions and stronger investor demand for the metal as a safe-haven asset.

Burkina Faso responded by revising its gold royalty rates. Previously capped at 7%, the royalty is now set at 8% when gold trades between $3,000 and $3,500 per ounce. The rate rises by one percentage point for every additional $500 increase beyond that range.

These factors helped drive the sharp increase in revenue Burkina Faso earned from the Sanbrado mine in 2025. WAF said the fiscal reform contributed to a significant rise in royalty costs during the year, including a 19% increase from the previous quarter in the fourth quarter. The declared amount also includes payments made under the community development contribution.

In Burkina Faso, mining permit holders are required to pay 1% of their monthly revenue, excluding taxes, into the Mining Development Fund, which supports local development projects. WAF did not provide the exact value of this contribution but said its annual revenue rose to A$1.08 billion, from A$723.2 million the previous year.

2026 opens with gold prices still surging

Beyond the impact of higher gold prices, WAF’s revenue growth also reflected a modest 2% increase in sales volumes compared with 2024. The amount paid to Burkina Faso does not include dividends linked to the state’s 15% stake in Sanbrado, nor other tax levies such as corporate income tax, on which WAF provided no details.

While awaiting further information on these points, 2026 has begun against the backdrop of an extended gold rally. Prices hit a record above $5,500 per ounce last week before easing to around $4,800. Gold remains up 13% since the start of January, according to Trading Economics. At current levels, Burkina Faso could benefit from an 11% royalty rate on Sanbrado’s revenues.

Operationally, WAF has not yet announced its production targets for 2026. The company plans, however, to commission the Toega satellite deposit by the third quarter. Progress on the project and developments at the site will be closely watched in the coming weeks.

Outside Sanbrado, WAF also started production at Kiaka, its second gold mine in Burkina Faso, in 2025. The mine is expected to complete its first full year of operation in 2026. The Burkinabe state expects Kiaka to further boost revenues from WAF’s operations, a position reflected in its request to raise its stake in the mine from 15% to 50%.

Aurel Sèdjro Houenou