A modern-day gold rush is under way in West Africa.
Mining companies have raced to the region in recent years, investing billions of dollars in new gold mines to cash in on near record prices for the metal.
The boom comes despite a rise in resource nationalism, with local officials seizing assets and detaining executives to secure a larger share of the profits. Several gold-producing nations are also battling a deadly Islamist insurgency.
At least 17 new gold mines have started production in West Africa since 2020, costing more than $4 billion, according to S&P Global Energy. The region is now the source of around 15% of global gold output, up from 10% a decade ago, and work is already under way on several more mines that are slated to begin production in the coming years.
"In Africa, there's still a lot of gold to be found," said Christopher Eger, chief executive of Resolute Mining, an Australian company with assets and projects in war-torn Mali and three other West African countries.
"It's definitely an area that people are focused on," Eger said. "We've currently got 10 drill rigs at one of our exploration projects in Côte d'Ivoire, but rigs are becoming harder to come by."
Resolute recently started construction at its Doropo mine in Côte d'Ivoire, after greenlighting a $516 million investment in the project earlier this year. The mine is expected to start producing gold in 2028.
While mining companies often do business in risky jurisdictions, there has been a significant increase in government interventions across Africa as commodity prices have risen.
Earlier this year, Burkina Faso transferred five gold mines to the country's state-owned mining company in a bid to earn more revenue from the country's natural resources. Meanwhile, Ghana handed control of one of its largest gold mines to a local firm -- having previously refused to renew the lease held by a South African company for more than two decades.
Interjections by local officials can be costly. Barrick Mining last year reached a $420 million settlement to regain control of a mine in Mali after two years of disputes over taxes and a new mining code. The deal also secured the release of four employees detained by the authorities.
Still, many mining companies remain undeterred. West Africa has abundant mineral deposits, workers with mining know-how and projects often progress more quickly than back home, executives say.
"We just believe that, if you want to be a force in precious metals, you have to have a presence in that area," said Jorge Ganoza, CEO of Canada's Fortuna Mining.
"Yes, there is higher perceived geopolitical risk," Ganoza said. "For us, the question is, 'What do we look for in exchange?'"
That is superior mineral resources, expedited permitting and speed to cash flow, Ganoza said. "It's a no-brainer," he added. "It just requires a lot of engagement with authorities."
Fortuna is planning to start construction on a $400 million gold mine in Senegal, which at current prices promises payback in just months.
Still, even countries considered among the continent's most stable are now posing challenges.
Ghana recently declared that all surface mining must be done by 100% Ghanaian firms by the end of this year and underground operations must be at least 50% locally owned. The country has also dismantled its flat 5% royalty fee, replacing it with a sliding-scale model that climbs as high as 12% when global prices rise.
"It's a bit frustrating to hear [from Ghana], 'We don't want to deal with Westerners anymore,'" said Matthew Wilcox, CEO of Australia's PDI Gold. "Over the years, the industry has invested a lot in these countries."
PDI owns a mine in Mali and last year began production at a project in Guinea that is still ramping up. The company is planning to start construction soon on a second Guinean mine. That is despite Guinean officials last year canceling 129 exploration permits, including two held by PDI.
"What's gone downhill is security," Wilcox said, fingering Mali and Burkina Faso. Ten years ago, he would ride his mountain bike all over Burkina Faso for days at a time. "I wouldn't even dream of doing that now," he said.
A growing Islamist insurgency has resulted in almost 10,000 fatalities across Burkina Faso, Mali and Niger over the past year, according to data analyzed by the Pentagon-funded Africa Center for Strategic Studies.
Western officials have grown increasingly worried that the U.S.-designated terrorist organization JNIM, an al Qaeda umbrella group, might actually take control of either Burkina Faso or Mali.
Executives say operations in Mali's gold-rich southwest largely sidestep disruptions related to insurgents, because supply chains for the mines come through Senegal.
Resolute says it has no plans to leave Mali despite the continuing security concerns and past disputes in the country. In 2024, its former CEO and two other employees were detained by Malian authorities. They were released just over a week later, after the company agreed to pay the government $160 million to settle claims related to tax, customs and other items.
"We've had our challenges in Mali, but we've been there for two decades and we're committed to the country," Eger said.
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