West Africa’s turmoil necessitates local listings and cooperative mining projects, according to a lobby organization

To negotiate a more complicated environment in West Africa, foreign mining firms should think about dual listings on regional stock exchanges and joint ventures with local partners, according to the leader of a regional lobby group.

By rewriting contracts, imprisoning executives, and halting operations, military-led regimes in West Africa have completely transformed the mining industry in response to demands for more control over natural resources.

Additionally, mining corporations are facing increasing security threats from jihadist organizations, which have prompted certain exploration activities to be halted.

Adama Soro, president of the West African Federation of Chambers of Mines, told Reuters that huge miners must adjust to the new reality, which includes satisfying expanding localization expectations from governments.

According to him, these corporations’ standing might be significantly strengthened via collaborative ventures with local partners and dual listings on regional exchanges.

“We’re pushing at the regional level to get dual listing on the regional stock market … so that the local investor can also benefit,” added Soro. “The big companies are open, they know this is the reality (and) you can’t go against the winds.”

West Africa’s mineral riches continues to draw attention from around the world, even while regulatory reforms have affected big businesses like Barrick (ABX.TO), Endeavour (EDV.L), Resolute Mining (RSG.AX), and Fortuna (FVI.TO), opens new tab in Mali and Burkina Faso.

With Ghana, Mali, and Burkina Faso together producing more than 10% of the world’s gold in 2024, the region has abundant deposits. Guinea is also the world’s top exporter of bauxite.

“Mine operations in Africa yield higher profits. Other areas are more stable, but they’re not as profitable,” Soro stated.

The geopolitical unpredictability and trade policies of U.S. President Donald Trump have contributed to record gold prices this year, which have increased stakeholder tensions, according to Soro.

“When you have the gold price rising, you see all stakeholders trying to pull everything to their side,” he added. “The best thing is to have open discussions.”

National governments and foreign mining firms appear to support his group’s call for greater localization, according to Soro, but the region’s stock exchanges’ capacity is still a problem.

However, he was vague when he said that some local listings would happen shortly.