African nations tightening grip on mineral wealth

Apr 19, 2026 News

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…Burkina Faso demands 40% stake in gold mine after Australian company projects up to 490,000 ounces in 2026

…Tanzania set to take over mining rights as government revokes 40 exploration licences

(Kaieteur News) – African governments are moving more aggressively to assert control over their mineral wealth, as a wave of policy shifts signal a stronger push for ownership and oversight of lucrative extractive industries.

Authorities are revisiting contracts, tightening regulations and, in some cases, stepping directly into projects long dominated by foreign investors.

In Burkina Faso, the government has told West African Resources Limited it plans to raise its stake in the Kiaka gold mine to 40%, up from 15%, in a move that comes as the Australian-listed producer projects a sharp increase in output from its West African operations.

According to a Business Insider report, Australian gold producer West African Resources Limited suspended trading in its shares on the Australian Securities Exchange on Friday, as investors weighed a government move in Burkina Faso that could significantly reshape ownership of one of West Africa’s largest gold projects.

The trading halt, requested by the company, will remain in place until a market update or April 21, 2026, as it prepares to respond to a decree by the government of Burkina Faso that could lift the State’s stake in the Kiaka gold mine to 40%.

State tightens grip on strategic gold asset

Burkina Faso’s move follows a recent decision, under a military-led government headed by Captain Ibrahim Traoré, to expand State control over the mining sector through a decree adopted by the Council of Ministers, in line with mining legislation introduced in 2024.

The proposed 40% stake builds on signals since August 2025 that the government intends to raise its interest in the Kiaka gold mine to as much as 50%, after increasing its holding from 10% to 15% at no cost.

At the time, West African Resources Limited had valued a 5% stake increase at $33.4 million.

The Kiaka gold mine, located in the Centre-Est region and covering about 54 square kilometres, began production in June 2025 and is currently 85% owned by the Australian miner, with the state holding the remaining 15%.

Trading halt reflects investor caution

Following the latest demand, West African Resources Limited said the trading halt was necessary to “ensure orderly trading and an informed market” as it prepares further disclosures.

The miner’s outlook remains closely tied to global gold prices, which have been supported by inflation and geopolitical tensions, although higher interest rates and a stronger U.S. dollar continue to weigh on sentiment.

Strong output outlook despite uncertainty

Despite the policy overhang, West African Resources is entering a period of strong production growth.

Business Insider Africa earlier reported that the company is targeting 430,000 to 490,000 ounces of gold in 2026, driven by the first full year of output from Kiaka alongside its Sanbrado mine.

Kiaka alone is expected to produce between 240,000 and 280,000 ounces, cementing its role as a key contributor to Burkina Faso’s industrial gold output.

The company is targeting all-in sustaining costs below $1,900 per ounce, pointing to solid margins even amid price volatility.

Chief executive and chairman Richard Hyde described 2026 as a “landmark year”, with potential shareholder returns including dividends and a share buy-back under consideration.

Meanwhile, Tanzania has moved to tighten control over its mining sector, revoking 40 mineral exploration licences in a sweeping enforcement action targeting companies accused of holding assets without developing them.

Tanzanian Minister of Minerals Anthony Mavunde ordered the Mining Commission to cancel the licences after repeated non-compliance by operators, despite prior warnings and grace periods to rectify violations – according to a Business Insider report.

A ministry assessment found widespread breaches, including hoarding of exploration blocks without development, failure to pay statutory fees, non-compliance with local content rules, and weak corporate social responsibility commitments.

“The government will not tolerate negligence that hinders the development of the mining sector and the broader economy,” Mavunde told reporters in Dodoma.

Authorities said the revoked licences will be returned to the State and reallocated under the “Mining for a Brighter Tomorrow” programme, targeting small-scale miners, capable investors, and designated groups to boost inclusive participation.

Africa’s mining push accelerates regulatory tightening

The decision reflects a broader trend across Africa, where governments are increasingly reviewing mining agreements, enforcing stricter licensing conditions, and prioritising national ownership of mineral wealth.

From gold to critical minerals, states are seeking to ensure that licences translate into actual production, job creation, and revenue rather than speculative holding.

In Tanzania’s case, the crackdown also reinforces its position as the world’s only source of Tanzanite, a strategically valuable gemstone concentrated near Mount Kilimanjaro.

“We have identified serious violations that undermine the sector’s potential,” Mavunde said, adding that enforcement is intended to restore discipline and transparency in licensing.

The Mining Commission has also issued compliance notices to 43 additional licence holders, giving them 30 days to address outstanding issues or face cancellation.

Failure to comply, officials warned, will result in further revocations, with assets reassigned to investors capable of advancing development and accelerating output in one of East Africa’s most resource-rich economies.

While countries like Burkina Faso and Tanzania are moving to tighten State control and expand their stake in extractive industries, Guyana’s model remains largely investor-driven.  Guyana’s mineral wealth continues to attract significant foreign investment, with several Canadian mining companies collectively controlling millions of ounces of gold across various stages of development. These projects, spanning multiple mining regions, are advancing through exploration, feasibility studies, and permitting.

Oko West – G Mining Ventures

Canadian gold producer G Mining Ventures Corp. (GMIN) is the 100-percent owner of the Oko West Gold Project, which is expected to produce 4.3 million ounces of gold over a 12.3-year mine life, with average annual production of 350,000 ounces.

In December, GMIN secured its final regulatory milestone for the project after receiving a 20-year mining licence from the Guyana Geology and Mines Commission (GGMC). The licence, which took effect on December 5, 2025, authorises full development, operation and commercial production at the Region Seven (Cuyuni-Mazaruni) site.

Pre-production open-pit mining is scheduled to commence in the first quarter of 2026, with assembly of the initial mining fleet already underway. Commercial production is expected in 2027.

Oko – G2 Goldfields

Canadian miner G2 Goldfields Inc. is targeting approximately 3.2 million ounces of gold from its Oko Gold Project, with average annual output projected at about 281,000 ounces during peak years.

The projections are contained in the company’s maiden Preliminary Economic Assessment (PEA), released last month, which outlines a combined open-pit and underground operation with a 14-year mine life. The assessment is supported by an updated mineral resource of 1.6 million ounces of gold in the Indicated category and 1.9 million ounces in the Inferred category. Project start-up is currently targeted for 2029.

GMIN recently announced that it will be acquiring G2. That deal can see the company earning over US$30 billion based on a combined resource of 7-million ounces, and gold prices remaining above US$4,500 per ounce when production begins

Toroparu – Aris Mining

The 5.4-million-ounce Toroparu Gold Project is being developed by Canadian miner Aris Mining Corporation through its local subsidiary, ETK Inc.

As previously reported by Kaieteur News, Toroparu is expected to produce an average of 235,000 ounces of gold per year over a mine life exceeding 20 years, yielding roughly five million ounces of gold, along with silver and copper by-products.

Aris Mining has applied to the GGMC and the Minister of Natural Resources to convert its small-scale claim licences, mining permits and prospecting permits into large-scale mining licences. The company had also disclosed that the project’s environmental permit was renewed in October 2024 and will remain valid until September 2029.

Omai Gold Mine – Avalon

Canadian miner Omai Gold Mines Corp. subsidiary, Avalon Gold Exploration Inc. is the 100-percent owner of the Omai Gold Project in Region Seven.

The company has embarked on an aggressive drilling campaign to rapidly expand the two orogenic gold deposits: the shear-hosted Wenot Deposit and the adjacent intrusive-hosted Gilt Creek Deposit. The latest resources estimate for the past-producing mine pegs it at 2.1 million ounces of gold. Last month, the company applied for environmental authorisation for the gold project.

Once a prolific gold producer from 1993 to 2005, the mine yielded 3.8 million ounces of gold, producing an average of more than 300,000 ounces of gold per year during a period when gold traded below US$400 per ounce. Since its return to “mining-friendly” Guyana, Omai has revitalised the property, which benefits from much existing infrastructure.

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• African nations, Aris Mining, G Mining Ventures Corp, G2 Goldfields, mineral wealth, Omai Gold Mine, toroparu

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