DAKAR, April 30 (Reuters) – International mining companies should consider joint ventures with local partners and dual listings on regional stock exchanges to navigate an increasingly complex landscape in West Africa, the head of a regional lobby group said.
Military-led governments across West Africa have upended the mining sector by rewriting contracts, detaining executives and suspending operations as they demand greater control over natural resources.
Mining companies also face growing security challenges from jihadist groups that have forced the suspension of some exploration activities.
The new reality means big miners must adapt, including by meeting governments’ growing demands for localisation, Adama Soro, president of the West African Federation of Chambers of Mines, told Reuters.
Dual listings on regional exchanges and joint ventures with local partners could go a long way towards strengthening these companies’ positions, he said.
“We’re pushing at the regional level to get dual listing on the regional stock market … so that the local investor can also benefit,” Soro said. “The big companies are open, they know this is the reality (and) you can’t go against the winds.”
Despite regulatory changes affecting major players such as Barrick ABX.TO, Endeavour EDV.L, Resolute Mining RSG.AX and Fortuna FVI.TO in Mali and Burkina Faso, West Africa’s mineral wealth continues to attract global interest.
The region boasts deep reserves with Ghana, Mali and Burkina Faso collectively accounting for over 10% of worldwide gold production in 2024, while Guinea dominates global bauxite exports.
“Operating a mine in Africa is more profitable. Other regions have stability but (are) less profitable,” Soro said.
Record gold prices this year, fuelled by U.S. President Donald Trump’s trade policies and geopolitical uncertainty, have escalated tensions among stakeholders, Soro said.
“When you have the gold price rising, you see all stakeholders trying to pull everything to their side,” he said. “The best thing is to have open discussions.”
Soro said national governments and international mining companies seem to be on board with his group’s push for increased localisation, but the capacity of the region’s stock markets remains a challenge.
Nevertheless, he predicted some local listings could occur soon, without providing details.
(Reporting by Maxwell Akalaare Adombila; Editing by Robbie Corey-Boulet, Kirsten Donovan)
