Fortuna eyes Guinea investments after Burkina Faso exit, says CEO

Canada's Fortuna Mining is eyeing expansion into Guinea after exiting Burkina Faso, where it faced regulatory instability and high security costs because of jihadist threats, its CEO told Reuters.

"We find Guinea to be a place we would invest today," Jorge Ganoza said by video call.

Fortuna, which is not currently established in Guinea, is looking for gold-mining opportunities there, conducting site visits and meeting with authorities, Ganoza said.

A portion of the mining company's growing exploration budget will go to Guinea where "there is a lot of room for discovery", he said.

The comments highlight how mining companies are responding to the changing landscape in West Africa, where military-run governments are revising mining codes while struggling to mitigate the threat posed by jihadists.

Burkina Faso and its neighbours Mali and Niger have all seen military officers seize power in coups since 2020.

The new leaders have introduced new mining codes to increase local control over the sector while sometimes deploying hardball tactics.

Malian authorities have arrested foreign executives and seized gold stocks amid negotiations with mining companies in recent months. Niger in December seized a French-run uranium site, while Burkina Faso's junta last month vowed to take control of more foreign-owned industrial mines.

Guinea, which borders Mali to the southwest, is also led by a military government — coup leader Mamady Doumbouya seized power in 2021 — but does not face the same jihadist threats. Its government has not revised its mining code, but has put pressure on foreign firms including by threatening their licences if they fail to meet a tight construction deadline for the giant Simandou iron ore deposit.

"We don't see the same situations as we see today in Mali or Burkina Faso or Niger," Ganoza said.

Fortuna announced last month it was exiting Burkina Faso with the sale of the Yaramoko gold mine to a private local company for $130m (R2.38bn).

Though Fortuna expects to lose approximately 70,000 ounces of gold from the sale, according to Ganoza, he said the deal was "a very compelling offer" given the mine's low reserves.

Insecurity from jihadist attacks had driven the company's annual security costs to as much as $7m (R127.94m), Ganoza said. In other jurisdictions he said such costs are between $200,000 (R3.7m) and $300,000 (R5.5m).

Fortuna had been forced to operate on "a complete fly-in, fly-out basis for all personnel", with ground transportation too dangerous, Ganoza said.

He added that Burkina Faso's government was "pricing themselves out of the market" by demanding state participation in mining firms as high as 30% in the revised mining code adopted in July 2024.

Fortuna's retreat from Burkina Faso follows competitor Endeavour's exit last year.

Globally, Fortuna is investing $51m (R932.1m) in exploration and project development this year, up from $41m (R749.4m) in 2024, Ganoza said.

In addition to Guinea, he said there will be a heavy focus on Senegal's Diamba Sud gold project and expanding operations in Ivory Coast, where Fortuna's flagship Seguela gold mine is located.

Reuters