• The state has not yet increased its stake in the Kiaka gold mine, despite widespread local media reports.
• West African Resources holds 85% of Kiaka, while the government of Burkina Faso holds 15%.
• Negotiations continue over a potential additional state stake of 25% to 35%, subject to decree authorization.

Burkina Faso has not increased its participation in the Kiaka gold mine. However, most local media outlets reported that the state had raised its stake. The national press agency headlined: “The State increases its participation to 40% in […] Kiaka SA,” citing the minutes of the Council of Ministers held on February 19.

A review of the official report shows that the Council adopted a draft decree authorizing the acquisition of an additional 25% stake in Kiaka SA, the company that operates the mine. However, the government used the future tense and referred to a draft decree “authorizing the acquisition of a participation.” This wording reflects an intention rather than a completed transaction. Several press articles presented the measure as a finalized deal, although the process remains pending.

The Australian company confirmed this interpretation. In a statement published on February 23, West African Resources stated that Burkinabe legislation requires a decree before the government can acquire an additional stake in the capital of an existing industrial mining company.

Nothing New Under the Sun

In practice, Ouagadougou has sought for several months to acquire an additional stake in the Kiaka gold mine, which entered production in June 2025. The project can deliver an average of 234,000 ounces of gold per year, or 7.27 tonnes. This output represents approximately 14% of Burkina Faso’s industrial gold production, which authorities estimate at 52 tonnes in 2025.

Casting of the first gold ingot from the Kiaka mine in Burkina Faso.

The 2024 mining code grants the state a free 15% stake in mining projects. The code also allows the state to acquire “at least 30%” in additional paid interests. Kiaka represents the first project for which Ouagadougou has formally exercised this prerogative under the law. In September 2025, West African Resources announced that it had received notice from the government regarding the acquisition of a 35% interest in the mine.

The Australian company disclosed in November 2025 that it had opened negotiations with Ouagadougou to reach a compromise. It mentioned the possibility of developing new mining projects with Société de participation minière du Burkina Faso (SOPAMIB), which the state created to operate mining assets. However, no evidence shows that these discussions led the government to abandon its acquisition plan. The Council’s report now refers to a 25% stake instead of the 35% initially mentioned.

Imminent Agreement?

Neither the Council of Ministers’ report nor the statement from West African Resources provides a timeline for signing an agreement. Investors must therefore wait for further updates from either party to clarify the structure and timing of any transaction.

The company stated that any increase in the state’s stake in its subsidiary must occur under conditions that respect the interests of all parties, including the financial interests of existing shareholders and lenders. Coris Bank ranks among those lenders, as the group contributed to a $265 million credit facility that financed the mine’s construction.

“Our discussions with the government regarding the ownership structure of Kiaka and the potential cooperation on new projects have reflected a shared vision to develop a strong and sustainable mining industry that benefits the people of Burkina Faso and delivers long-term value to all stakeholders,” said Richard Hyde, Chief Executive Officer of West African Resources.

This article was initially published in French by Emiliano Tossou 

Adapted in English by Ange J.A de Berry Quenum