Burkina Faso assures investors that acquiring mining stake plans is to ease worries  

Burkina Faso has moved to reassure investors that its request to acquire an additional 35% stake in West African Resources’ Kiaka gold mine is an option, not a demand, under the country’s new mining framework.

Speaking at a mining conference in Australia, Mamadou Sagnon, director-general of the mining registry, explained that the Mining Code introduced in July last year allows the state to secure a minimum 30% paid interest in mining projects, in addition to its 15% free-carried stake. The paid portion is linked to exploration and feasibility costs rather than the mine’s market valuation.

The Code also gives the government and local investors the right to acquire further equity on commercial terms.

“In the case of West African Resources, the government addressed a letter to solicit the opening of participation up to 35%,” Sagnon said. “For the moment, it is a solicitation – it is not forced.”  Sagnon stressed that the measure was intended to strengthen confidence in the sector, rather than deter foreign capital.