Omanghana
The government of Burkina Faso is negotiating the peaceful acquisition of an additional 25% equity stake in the Kiaka gold project, according to official reports dated February 23, 2026.
The move forms part of a broader strategy by the military-led government under Ibrahim Traoré to consolidate state control over strategic natural resources and increase national returns from the mining sector.
Burkina Faso’s Council of Ministers reviewed a draft decree authorizing the state to acquire the additional 25% stake in Kiaka SA, the company developing the project.
While some media reports initially suggested the acquisition had been finalized, government sources clarified that the move remains an intention rather than a completed transaction, subject to formal authorization and ongoing negotiations with the project’s owners.
Talks are being conducted by SOPAMIB, the state-owned mining enterprise established to manage government participation in extractive projects. SOPAMIB is negotiating with West African Resources (WAF), the Australian-listed company developing Kiaka.
Both parties have emphasized a collaborative and non-confrontational approach. WAF has stated publicly that discussions with the Burkinabè authorities are constructive and that operations at its existing Sanbrado mine and Kiaka projects remain unaffected by the negotiations.
If the acquisition is completed, Burkina Faso’s total stake in the Kiaka project would rise to 40%, made up of:
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15% free-carried interest, granted automatically under the mining code
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25% paid interest, to be acquired through negotiation
Such a level of state participation would represent one of the most significant government ownership positions in a large-scale gold project in West Africa.
The negotiations follow reforms introduced under Burkina Faso’s 2024 Mining Code, which increased the mandatory free-carried state interest in all mining projects from 10% to 15%.
The revised code reflects a growing trend across parts of Africa toward resource nationalism, as governments seek greater control over mineral wealth amid rising commodity prices and fiscal pressures.
The push for increased equity comes as Burkina Faso’s gold sector continues to expand. The country recorded a historic 94 tonnes of gold production in 2025, reinforcing its position as one of Africa’s leading gold producers despite ongoing security challenges.
The Kiaka project is expected to play a major role in sustaining output over the long term. Once fully operational, Kiaka is projected to produce an average of 234,000 ounces of gold annually over an estimated 20-year mine life, making it one of the country’s most significant undeveloped gold assets.
Government officials say the strategy is aimed at ensuring that Burkina Faso captures a larger share of mining revenues to fund development, infrastructure, and security needs. At the same time, authorities have sought to reassure investors that the country remains open to foreign capital, provided partnerships are aligned with national interests.
Analysts note that the outcome of the Kiaka negotiations will be closely watched by both investors and neighboring countries, as it could set a precedent for future state participation in large-scale mining projects across the Sahel.
If successfully concluded, the Kiaka stake acquisition would mark a defining moment in Burkina Faso’s evolving mining policy—one that seeks to balance sovereign control, investor confidence, and long-term economic benefit.
For now, negotiations continue, with both sides signaling a preference for dialogue over disruption as Burkina Faso reshapes its relationship with the gold sector that underpins a significant share of its economy.
Source: Omanghana
