The president of a major West African mining lobby group has urged international mining companies to pursue joint ventures with local partners and consider dual listings on regional stock exchanges in response to mounting challenges across the region’s mining sector.
Speaking to Reuters, Adama Soro, head of the West African Federation of Chambers of Mines, said the wave of political and regulatory upheaval—fuelled by military-led governments—has significantly altered the business landscape for miners operating in West Africa. In recent years, authorities in countries such as Mali and Burkina Faso have rewritten mining contracts, detained company executives, and halted operations in efforts to assert greater national control over natural resources.
Adding to the strain are rising security threats from jihadist groups, which have disrupted exploration work and heightened operational risks.
Given these pressures, Soro said it was essential for foreign mining firms to adapt by embracing localisation policies, including joint ownership with local companies and listing shares on regional stock exchanges to encourage broader local participation.
“At the regional level, we’re promoting dual listings so that local investors can also benefit,” Soro said. “Large mining companies understand that this is the new reality—resisting change is no longer an option.”
Despite the regulatory clampdown, West Africa continues to attract global interest thanks to its abundant mineral reserves. Ghana, Mali, and Burkina Faso together accounted for over 10% of global gold production in 2024, while Guinea remains a dominant player in the global bauxite market.
“Operating a mine in Africa is more profitable, even though other regions may offer more stability,” Soro noted.
He added that surging gold prices this year, driven partly by geopolitical uncertainty and US trade policies, have fuelled tensions between mining companies and host governments.
“When gold prices rise, everyone tries to secure a larger share,” he said. “The best approach is to keep dialogue open and constructive.”
While both governments and mining firms appear supportive of greater localisation, Soro acknowledged that the limited capacity of local stock exchanges could pose challenges. Nonetheless, he expressed confidence that some local listings would materialise in the near future, though he did not name specific companies.
