The head of a key mining industry group has advised international mining firms operating in West Africa to pursue joint ventures with local partners and seek dual listings on regional stock exchanges, as political instability and shifting regulations reshape the sector.
Adama Soro, president of the West African Federation of Chambers of Mines, said foreign mining companies need to adapt to new realities in the region, where military governments have disrupted operations by revising mining contracts, detaining company executives, and halting projects to exert more control over natural resources.
The mining sector is also grappling with increased security threats from jihadist groups, which have forced the suspension of exploration work in some areas.
Soro told Reuters that to remain competitive, major miners must align with growing demands for local involvement. “Dual listings on regional stock markets and joint ventures with local entities would help improve their standing and create shared benefits,” he said.
He added that the regional lobby is actively encouraging such listings to allow West African investors to benefit directly from the resource boom. “We’re advocating for dual listings so local investors can take part. Major companies understand this shift—they know resistance is futile,” Soro said.
Despite regulatory disruptions affecting global firms like Barrick, Endeavour, Resolute Mining, and Fortuna in Mali and Burkina Faso, interest in the region remains strong due to its vast mineral reserves. Ghana, Mali, and Burkina Faso jointly contributed more than 10% of global gold output in 2024, while Guinea remains a top exporter of bauxite.
Soro noted that, while regions with more political stability exist, African mining remains highly profitable. “Other parts of the world may be more stable, but they’re less lucrative,” he said.
He linked recent tensions in the mining industry to surging gold prices, which have risen amid global uncertainty and policy decisions in the US. “When prices soar, everyone wants a bigger share,” he said. “The solution lies in transparent, inclusive dialogue.”
According to Soro, both national governments and international mining companies support efforts to promote local participation, although the limited capacity of West Africa’s stock markets poses a hurdle. Nonetheless, he predicted that some local stock listings could emerge soon.