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West African Resources says its right to mine in Burkina Faso is safe from revocation

Adrian RausoThe West Australian
Tue, 8 October 2024 7:58AM
Adrian Rauso
West African Resources says the Burkina Faso government has told the company its mining permit is safe, but investors are not fully convinced.
On Monday West African’s shares were hammered — finishing down 19.5 per cent after a radio address from Burkina Faso’s junta leader Ibrahim Traore on Saturday, in which he threatened to strip mining permits from foreign companies.
The Subiaco-based gold miner on Tuesday said it had been in contact with the government and confirmed its mining permit remains “in good standing”.
“The company has been in contact with the government officials who have informed us that the president’s comments with respect to the potential withdrawal of mining permits were directed to those companies operating in violation of the laws of Burkina Faso,” West African stated.
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“Companies operating in compliance with the laws of Burkina Faso, which includes WAF and many other mining companies, will not have their mining permits withdrawn or revoked.
“Officials from the Ministry of Mines and Quarries confirmed that of none WAF’s mining permits are under review and all of them remain in good standing.”
West African was up 7.5 per cent by the close of trade, clawing back less than half of its Monday losses.
Last month West African’s boss Richard Hyde downplayed concerns about Burkina Faso’s leadership nationalising mines, after the country adopted a new mining code that increases government ownership in mining projects from 10 per cent to 15 per cent.
The company’s operations are centred in Burkina Faso. It runs the Sanbrado mine and is currently building the Kiaka mine in the country.