West African Resources Shares Plunge as Burkina Faso Plans Mining Permit Revocations

Highlights:

• West African Resources Limited (ASX: WAF) shares plummeted by 19.52% as Burkina Faso announces plans to revoke foreign mining permits.
• Burkina Faso’s junta leader, Ibrahim Traore, revealed the country’s intentions to nationalize gold production and reduce reliance on multinational miners.
• Uncertainty looms for foreign mining companies like West African Resources, with stock prices reflecting investor concerns over potential operational disruptions.

Burkina Faso's Bold Move to Nationalize Gold Production

West African Resources Limited (ASX: WAF) saw its stock drop by 19.52% today as investors reacted to a significant policy shift in Burkina Faso. The country’s junta leader, Ibrahim Traore, announced plans to revoke mining permits held by foreign companies, including West African Resources, to boost domestic gold production. Traore's declaration came during a radio address marking his two-year rule, where he emphasized the need for Burkina Faso to manage its own gold resources.

Impact on Mining Operations

Burkina Faso is a major gold producer, and the decision to cancel permits could have widespread ramifications for foreign mining operations. Companies like West African Resources, Endeavour Mining (UK), and others operating in the country face uncertainty as the government seeks to favor local miners.

Stock Decline Amid Uncertainty

At the time of writing, West African Resources shares have fallen 19.52% to $1.34 as concerns mount over the future of its operations in the region. The company is among those most impacted by Burkina Faso’s shift away from foreign influence in the mining sector.

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