Burkina Faso’s nationalization rattles West Africa’s gold sector
Burkina Faso is accelerating its drive to nationalize natural resources, requesting this week to acquire another 35% of West African Resources’ (ASX: WAF) Kiaka gold mine — a move that forced the miner into a trading halt on Thursday.
The company said the government wants to raise its stake in Kiaka, which poured first gold in June, “for valuable paid consideration”. It added the trading should resume Monday.
WAF has grown from a struggling explorer into one of West Africa’s biggest success stories, producing about 500,000 ounces of gold a year at low cost. The company says it has already paid hundreds of millions of dollars in taxes and royalties to Burkina Faso, with revenues expected to reach the billions once Kiaka ramps up.
Orezone Gold (ASX, TSX: ORE), which operates the Bomboré mine, also halted trading after the news. The company said it has received no similar request from the government but plans to meet with officials this weekend.
The development highlights the fragile investment climate in West Africa, already rattled by political instability in Mali.
Burkina Faso, Africa’s fourth-largest gold producer, has added key assets to the portfolio of its new state-owned miner, Société de Participation Minière du Burkina (SOPAMIB).
In June, five gold mines and exploration permits, previously held by Endeavour Mining and Lilium, were transferred to SOPAMIB. The push began in August 2024, when the government nationalized the Boungou and Wahgnion mines for about $80 million, a fraction of the $300 million their sale had been valued at.
Other operators remain exposed. Canada’s IAMGOLD (TSX: IMG) continues to run the Essakane mine, in which the government holds a 10% stake. Security concerns, however, weigh heavily on its operations.
A popular leader
The policy shift reflects the growing influence of Ibrahim Traoré, the 37-year-old military leader who seized power in 2022 and declared himself president. Traoré has called on his ministers to expand state control over resources while framing his rule as part of a broader Pan-African and anti-Western revival.
His supporters see him as a bulwark against foreign interference. In April, thousands rallied in Ouagadougou after an alleged counter-coup attempt failed. They also denounced comments by US Africa Command chief Gen. Michael Langley, who accused Traoré of misusing gold reserves. Demonstrations spread to London, Kingston and Montego Bay, where members of the African diaspora voiced solidarity and praised him as a “Black liberator.”
Whether Traoré can stabilize Burkina Faso and repel a long-running Islamist insurgency will determine how far his resource nationalism spreads across the region.
New ‘safe’ destinations
For foreign miners, the upheaval underscores how quickly long-term agreements can collapse. Countries such as Ghana, Egypt, Namibia and Botswana continue to offer more predictable frameworks, while Côte d’Ivoire and Guinea are emerging as new magnets for investment.
Rio Tinto’s (ASX, LON: RIO) multibillion-dollar Simandou iron ore project highlights growing confidence in Guinea’s commitment to the rule of law.
Yet the risks remain high. Success in much of Africa often depends on global majors with world-class mines, diversified portfolios and close government ties. Canada’s Barrick Mining (TSX: ABX)(NYSE: B) continues to navigate these challenges in Mali, but smaller players such as WAF now face sharper uncertainty.
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32 Comments
Lloyd Penner
Canada isn’t much different. They just steal in a different way. They suffocate with regulation until you’re broke or just go away in sheer frustration. Either way it’s also a tin pot dictatorship stealing from the very ones who create the wealth. Weak, foolish leaders in all levels of government.
Buckteeth lungu
Ebrahim Traore president of Africa
Isaac Sesi
So here we go again — another Western-framed hit piece crying foul because an African nation dares to reclaim control of its own resources. Notice how the article mourns for “investors” and “trading halts” but never once asks the obvious: why should Burkina Faso, Africa’s fourth-largest gold producer, remain poor while foreign companies cart away billions?
For decades, the West and its mining multinationals have dictated the terms — exploiting Africa’s gold, oil, and minerals while leaving our people with crumbs. Now, when Burkina Faso says enough and moves to nationalise what is rightfully theirs, suddenly it’s labelled “instability,” “risk,” and “uncertainty.” Let’s call that what it is: the language of neo-colonialism.
What you call “rattling the gold sector,” we call economic liberation. What you call “unpredictable,” we call sovereignty. And what you frame as a threat to investors is actually a chance for Africans to finally benefit from our own wealth.
Ibrahim Traoré and the people of Burkina Faso are doing what many across the continent have dreamed of for generations: breaking free from the stranglehold of foreign interference and reclaiming dignity through self-determination. This is not “anti-Western,” it is pro-African.
The truth is simple: Africa is tired of enriching outsiders while our children go hungry. If investors want to be part of Africa’s future, it will no longer be on exploitative, one-sided terms. Times are changing. Africa is rising.
DG
100% the ONLY problem is that in every instance, those greedy leaders feed on the wealth while making things even worse for the couriers citizens. This can’t be denied!!!
Vince
Another dictator taking all the money and leaving crumbs for the people if anything at all for the people
Waitandsee
I agree with you BUT! If African Leaders continue stealing and enriching themselves instead of their people and entire economy then they can expect it to fail! For decades they have beem selling our resources for next to nothing all for yhe sake of under the table money for personal financial gain instead of saying NO, we do it right or not at all! African leaders don’t want their people to be successful or rich, they want and like them dependant on the govt, on their knees begging so leaders always have the upper hand and “respect” not given but forced upon! Its sadder than you think! Everyone sees it but the hungry ones! Numb and dumb them and keep them down and uneducated enough to not ask the right questions.
Edda
Isaac Sesi, herzlichen Glückwunsch zu Ihrer sehr guten und klaren Antwort.
Ich hoffe, viele Menschen lesen, was Sie zu Bukina Faso und dem angeblichen “Ressourcennationalismus” schreiben!
Valerie Goode
Well said. It’s frightening how much of an Anti- black agenda has been nurtured throughout the world, manifesting as racism, extraction and exploitation. The 9th wonder of the world. The joke is Africa will probably still save the rest of the world even after its taken control over it own economy on its own terms, coz nubians aren’t nurtured to hate like Europeans are.
Peggy Wu
If a nation wishes to reclaim rights to its mineral reserves, it should also take responsibility for developing and financing those operations independently. What creates instability is when governments approve projects often with significant foreign investment and risk and then later seize them in a hostile manner. The operations and the 1000’s of job that come with them would not exist without foreign investment. And how will these projects fair long-term…………
This is not uniquely an African issue, cross-border investment in natural resources happens globally.
Tom Chemnjor
Well put and spot on. No African country will ever ‘develop’ until it controls it’s own resources and better still does value addition to it’s mineral resources and agricultural produce. Exporting Raw materials= Reporting jobs and technical/ expert capacity to doing it home..
Onos igho
African liberation is sure and the fear is what brings shivers down the western world. Traorè is doing a great job
Audley Graham
Great article, but you so called rule of Law, what does it mean and will that translate into improved life chances for the people of Bukinabe or Africa as a whole. What about social justice and fairness. Do these words exist in western dictionaries.. Your great article presents a picture of the West African governments as been hostile and greedy. Where is the evidence that western investments have benefitted Africa
Where is your social conscience?
R coleman
Gold should be split country 75 percent producer 25 percent.
Christian Bruku
This is the man of the moment. Ghana should borrow some of his Leadership skills and wor hard to achieve success. Ghana doe not need Coward,chicken Leaders. Nkrumah paved the way long time ago.
Maketane
Much as most Africans agree with the principle of rule of law and stability as well as direct foreign investment by world class mining companies, the major problem is the exploitative nature of these companies! They simply come to mine siphon out all the super profits to their mother countries with total disregard of their corporate social responsibilities to develop these communities where they are operating! These actions offer fuel for instability in these African countries they operate in as local communities, direct their anger to the incumbent governments and that’s how these Islamic insurgents organise and eventually thrive and unseat elected governments.
Peterchuran
The west is no better at managing areas zlook at the mess on the middle East How is that by the rule of law
Clifford Lynch
The African people just need to ensure their leaders have the genuine interests of their people and development of their countries at heart. These mining companies have so much financial clout that they can influence the outcome of elections to ensure one of their puppets remain in power. The ex colonial masters also ensure this happens.
My fingers remain crossed that Ibrahim Traore is one of those few leaders that has genuine interests at heart rather than a personal financial and political agenda. He is sending all the right signals so far.
Masolo
Resource Nationalization is the National Security Strategy of every realist state in the world. None of the countries and foreign mining companies operating in African countries would allow African states mining companies to operate on such similar unfair terms the West. African rich mineral countries have lost trillion in US dollars/Euro to such unfair mining rules. What this article cslls rules of law is actually rules of the jungle/exploitation which western mining compsnies have set to favour them. Predident Captain Ibrahim Traore of Burkina Faso, Colonel Assimi Goïta of Mali, and General Abdourahamane Tchiani of Niger have done the right thing to nationslize their respective countries minerals.
Muts 1 Dollar
“Ibrahim Traoré and the people of Burkina Faso are doing what many across the continent have been dreaming of for generations: breaking free from the stranglehold of foreign interference and reclaiming dignity through self-determination. This is not “anti-Western,” it is pro-African..”
Allan Grant
What the hell are you talking about rule of law,What law ? the law that says the West can steal Africa’s resources,Burkina Faso is an Example of how Africam states should behave too long infact going all way back to Slavery the West has had African leaders on a leash,enriching the leader whilst taking the nations resources for next to nothing ,thus keeping the nations and it’s people in states of poverty,Ibrahim Trareore is a Hero for his people not only in Burkina Faso,But Black people all over Africa and the Diaspora. When you write or utter his name do so with respect !
Luke weyland
Triore is a courageous leader. From Congo first leader to Libya’s Gadaffi leaders who sought to take control over their resources have been killed by by either the USA or former colonial powers. resources belong to Africa.
Firstname
These so called African Nations, ought to know that Europeans are determined to stay on top in the World by any means whatsoever. Loyalty to a secure and prosperous tomorrow is in these Nations willingness to let saboteurs know consequences of equal or greater magnitude will be fall them and all their accomplices.
Goh Peng Soon
Entrepreneurs of Singapore. Look towards the Africa Sahel of Africa, Starting from Burkina Faso. For future economic, agriculture etc…..
Matthew Mungai
I am loving seeing honest comments regarding how much of a hit piece this is from the white media. This article panders to the very same investors that know the only reason they are stillaround is from their exploitative practices mainly in Africa past and present. Black empowerment has come too far to fall for white media narratives and word play. What the foreign investors need to do is to “work hard and get a real job” the same as they tell us here in Africa, no more hand outs because one is used to generational wealth and building things off other peoples backs.
Norbert velez
Let me say this the natural minerals that Africa produces is the lifeline of the west I should be the lifeline of Africans a totally United African continent would make the west crap it’s pants,that’s why they pay millions to warlords with Africa’s own mineral money to destabilize the country and keep robbing African nations of their minerals, a United Africa becomes a World Superpower and the West knows it Viva Africa Libre
Me
It simply time to do things right and differently in Africa. It has been neglected and denied. The resources are needed in Africa. Nowhere else. France, US AND others
Need to figure out how Africa can win, and not continue this one-sided monstrosity of a deal.
Otherwise, African nations should just team up with Russia, China , Korea whoever will be a best partner
David
A dose of reality for those that have never actually lived in a truly African controlled country and only operate from a place of liberal idealism……first, why haven’t these countries organized to harvest and profit from their own resources? The answer is an uncomfortable one, but that doesn’t change reality. Secondly, when Africans “organize” and operate their own governments, the results have been consistent. Whatever money they find, through benefits of foreign investments or the generosity of foreign aid, will predictably be taken for the benefit of those in power, with just enough going to help their own people to make it look like they may be doing something different. I guarantee my view of African government practices is shared by the extremely poor Africans in any of these countries mentioned . Reality bites
Katlego Mashishi
The WEST should continue crying, Africa must raise. Anyway they have BIGGER ISSUES, Like their Debt($USD37 Trillion) that is unsustainable and is going to crash, concentrate on that, instead of TRAORE.
Toby
Not much thought put in to where future investment will come from. This takeover of resources will be copied by other countries and may be sexy for 5 or 10 years but after that Africa will be far worse off than they are now! Without foreign investment there will be no jobs!
Sally
“investor” { dark humor) is an euphemisim for parasitical extractor that kills the host.
jim
I’m sure it’ll be a success story to rival Zimbabwe, the future S Africa and others after independence from ‘the world’.
Dessert Dweller
After decades investing in mining firms among the most important lessons learned has been to never invest in low caliber people, projects or jurisdictions. The projects may look like good values and some have proven worthy but it is like walking through a minefield. Paying a reasonable price for quality proves prudent in the long run, plus doing so allows you to sleep soundly.