West African Resources has agreed to increase Burkina Faso’s
free-carried equity in its local mining operations from 10% to 15%,
in line with the country’s revised mining code introduced in August
2024.
In a statement, the Australian company confirmed that the
adjustment will apply to its three gold projects: Sanbrado, Kiaka
and Toega.
The company had been in negotiations with the Ministry of Mines
and other local stakeholders following the legal change, which aims
to increase state revenue from mining operations. Similar policy
shifts have been implemented across several West African countries
as governments seek greater returns from resource development.
West African Resources stated that all other contractual
conditions with the state remain unchanged. The company also
confirmed that its full-year production guidance for 2025 is
unaffected, with projected gold output between 190,000 and 210,000
ounces at an all-in sustaining cost below $1,350 per ounce.
Construction of the Kiaka mine remains on schedule and within
budget, with first gold expected in early third quarter 2025.
The company had previously indicated that the revised code could
place two of its permits at risk. Its decision to comply with the
new equity requirements suggests it has opted to maintain
operations under the updated regulatory framework.
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