By: African mining

There has been a surge in mine and mineral nationalisation in West Africa writes Dr Nicolaas C Steenkamp. In this excursion to the western front of Africa, the question is: Is this the start or the end of an era?

Dr Nicolaas C Steenkamp    Dr Nicolaas C Steenkamp is an independent consultant, specialising in geological, geotechnical and geometallurgical projects and mining project management. He has over two decades of industry experience with global exposure. (ncs.contract@gmail.com)

West Africa has a reputation of high risk, high reward, but in the past year there have been questions around how high the risk will go. A series of West African countries have seen coups and increased moves toward nationalisation. Mining nationalisation, the process by which governments assert greater control or ownership over mineral resources, has become a significant trend in West Africa. Driven by a desire for increased economic benefits, greater state sovereignty over natural resources, and addressing perceived imbalances in existing mining agreements, several countries in the region have amended their mining legislation with notable effects on Western mining companies.

Burkina Faso

Burkina Faso has been at the forefront of recent nationalisation efforts with extensive changes to their mining legislation. The military-led government, particularly since the coups in 2022, has shown a strong drive towards resource nationalism. The 2024 Mining Code established the state-owned mining company,

Société de Participation Minière du Burkina (SOPAMIB), as the primary vehicle for increased state control. As a first step, SOPAMIB has already taken control of the Boungou and Wahgnion gold mines, previously operated by London-listed Endeavour Mining. In August 2024, Burkina Faso nationalised two mines previously sold by Endeavour Mining to a private company in the country, Lilium Mining. After Lilium failed to pay for the Boungou and Wahgnion mines, it was agreed they would be transferred to the west African state for USD60-million in cash due to Endeavour. The government has announced plans to nationalise more industrial mines.

In addition, there has been an increase in the local content requirements, where the new code mandates a minimum of 30% local procurement for all mining operations and offers preferential tax treatment for companies exceeding local content targets. It also makes provision for a community development fund receiving 2% of gross mining revenues. It has also introduced new royalties on gold, and will now apply a 6% levy when the gold price trades between USD1 500/oz and USD1 700/oz increasing to 6.5% and 7% when it trades between USD1 700/oz and USD2 000/oz. At a gold price above USD2 000/oz – a levy of 7% will be maintained. Plans are also underway to introduce a 5% free carry by the government in all mining operations. (As at the time of writing in May 2025)

The lack of clarity regarding compensation models for nationalised assets creates significant uncertainty for existing operators and potential investors, leading to concerns about policy stability and asset security.

Exploration spending reportedly dropped by 22% in 2024, indicating a pullback in long-term investment. The country is also facing an internal threat from Islamic militant groups that has resulted in loss of life during clashes, and the government has not been able to subdue or eliminate the danger.

Mali

Following political instability and a military coup, Mali has also moved towards greater state control of its mining sector. The new Mining Code (2023) permits the government to take up to a 35% interest in mining projects. Whether this applies retroactively, has been a subject of legal debate.

 The country also introduced the local content act of 2023, and its implementing rules aimed to enhance the participation of Malian citizens in ownership, supply of goods and services, and employment in the mining industry. Foreign subcontractors and suppliers to mining companies now require 35% Malian ownership. The government took 35% stake in Kodal’s Bougouni lithium project during November last year.

Nationalisation of Yatela Gold Mine in 2024 by Mali’s transitional authorities signalled a decisive step towards reclaiming sovereignty in the mining sector. Once again, Western mining companies face the prospect of reduced equity in their Malian operations due to the state’s right to acquire a significant stake. The mandatory 35% local ownership for subcontractors and suppliers necessitates significant adjustments for Western companies operating in the Malian mining sector. The new rules give exclusive priority to Malian personnel for employment and training, potentially impacting the staffing and operational strategies.

Mali also made headlines in November 2024 when Terry Holohan, CEO of Resolute Mining, was detained in the country for 10 days, following a dispute between the company and the government on unpaid taxes. He subsequently resigned his position following a period of leave after his release.

At the time of writing, Barrick had been heavily impacted with the company announcing the closure of its offices in Bamako by the Malian government as well as threats from the government to place the Loulo-Gounkoto gold mine under provisional administration. Operations at Loulo-Gounkoto had been suspended since the end of January 2025 following the government’s action in seizing three tons of gold from the complex after blocking gold exports from the mine since November 2024. A number of company employees have also been detained.1

Hummingbird Resources said it had agreed to pay Mali USD16.4- million and waived VAT claims worth another USD16-million in return for the renewal of “key” exploration permits on the Yanfolila gold mine. B2GOLD was able to proceed with extension projects, including an underground mining project, at its Fekola Complex after resolving a dispute with the Mali interim government, and agreeing to the application of a new mining code to their operations in the country. The company was also rocked when employees were attacked and killed in February of 2024. Foreign artisanal gold miners were also impacted when their permits were suspended in March 2025.

Guinea

Guinea’s government has also exhibited resource nationalist tendencies since legislative amendments following the 2021 military coup. As a first step, the new government embarked on a process of renegotiating demands with current mining operators. The government has demanded greater portions of Guinea’s untapped resources, particularly regarding the Simandou iron ore deposit. Similar to other nations in the region, Guinea has increased local content requirements in the mining sector.

Mining companies, involved in major projects like Simandou face pressure to concede larger stakes to the Guinean state or local entities. The higher local content requirements could potentially increase operational costs for mining companies, opting to continue operations in Guinea.

Niger

Following a military coup, Niger has also revised its mining legislation. The changes were initiated by the 2022 Mining Code and amended in 2023, regulating all aspects of mineral and fossil substances. The reaction of the new government of Niger was more dramatic with the revocation of licenses. The military government has since revoked the mining licenses of French company Orano and Canadian company GoviEx Uranium for their Imouraren and Madaouela projects, respectively. This led to a short-lived overheating of the global uranium market to secure the supply of yellow cake.

The abrupt revocation of licenses highlights the increased political and regulatory risks for Western mining companies operating in Niger, with other reports suggesting that there has been an increase in activity by Eastern and Russian mining entities in the country.

Senegal

Senegal’s 2016 mining code grants the state the right to acquire additional shares in mining companies up to 25% of the share capital for consideration. Senegal followed other countries in the region by announcing their intention to renegotiate contracts in 2024. Following the election of a new president in March 2024, Senegal announced its intention to renegotiate key contracts in the mining (as well as oil and gas) sectors to increase transparency.

In July 2024, Senegal’s president was tasked with trying to ensure that juntas in Mali, Niger and Burkina Faso do not withdraw from ECOWAS.

Make or break?

A wave of resource nationalism is evident across West Africa, often exacerbated by political instability and military coups. Governments are increasingly seeking greater control over their natural resources, viewing it as crucial for economic development and national sovereignty. In addition, there has been a notable increase in state participation. Amended mining legislation frequently includes provisions for increased state ownership or participation in mining projects, often through newly established state-owned mining companies.

In parallel there has been an emphasis on an increase in local content. New laws often mandate greater local content in terms of employment, procurement of goods and services, and even ownership.

The least disruptive initiatives have been the renegotiation of existing agreements, where West African governments are increasingly seeking to renegotiate existing mining agreements that they deem unfavourable, aiming for better fiscal terms and greater benefits for the state. In more extreme cases, operations have been expropriated, gold production confiscated and high- ranking company officials arrested.

The unpredictable nature of policy changes and the potential for unilateral decisions increase the regulatory risk for Western mining companies operating in the region. The nationalisation measures and contract renegotiations have the potential to trigger international investment disputes. Some African states have already faced arbitration proceedings related to mining reforms. The trend of resource nationalism can negatively impact investor confidence, potentially leading to a decrease in foreign direct investment in the mining sector in the long term.

Mining nationalisation in West Africa is a dynamic and evolving landscape. While driven by understandable aspirations for greater economic benefits and resource sovereignty, these policies pose significant challenges and risks for mining companies operating in the region. Navigating this environment requires a deep understanding of the specific legislative changes in each country, proactive engagement with governments, and a careful assessment of the evolving political and regulatory landscape. The long-term effects of these nationalisation efforts on both the mining industry and the economic development of West African nations remain to be seen. This may signal the end of the golden era mining in West Africa, or a new dawn for the way mining is done there.