Fortuna Mining plans to invest in Guinea after withdrawing from Burkina Faso

Canadian mining company Fortuna Mining is considering expansion into Guinea, marking a strategic shift after withdrawing from Burkina Faso, where it faced growing regulatory instability and high security costs due to jihadist threats, CEO Jorge Ganoza told Reuters in an interview.

Fortuna, which does not yet operate in Guinea, is actively exploring gold mining opportunities in the West African country. Ganoza confirmed that the company is carrying out site visits and engaging in discussions with the Guinean authorities. "We think Guinea is a place where we would invest today," he said in a video call, highlighting the country's potential for new gold discoveries.

Last month, Fortuna completed the sale of its Yaramoko gold mine in Burkina Faso to a local private company for $130 million. The move comes amid growing challenges in the country, where insecurity linked to jihadist attacks has pushed the company's annual security costs to $7m, compared with $200,000-$300,000 in other jurisdictions. Ganoza also pointed to logistical constraints, including the need to airlift all staff due to the dangers of overland travel.

Burkina Faso, which has been ruled by a military junta since a coup in 2020, revised its mining code in July 2024, imposing a state stake of up to 30% in mining companies. "The government is excluding itself from the market with such requirements," said Ganoza, describing the sale of Yaramoko as a "very convincing offer" despite the expected loss of 70,000 ounces of gold in production.

Fortuna is not the first to pull out of Burkina Faso. Last year, its competitor Endeavour Mining also left the country, illustrating the growing challenges for mining companies in the region.

Guinea stands out for its relative security stability compared to its neighbours Mali, Burkina Faso and Niger. Unlike these countries, Guinea has not revised its mining code, although the government has put pressure on foreign companies, notably by threatening to withdraw licences for the Simandou iron ore project. "We don't see the same situations as in Mali, Burkina Faso or Niger", said Ganoza.

Fortuna plans to allocate part of its exploration budget of $51 million in 2025 (up from $41 million in 2024) to projects in Guinea. The country is rich in mineral resources and, according to Ganoza, offers "plenty of room for discovery".

Beyond Guinea, Fortuna is intensifying its efforts in other West African jurisdictions. The company is focusing on the Diamba Sud gold project in Senegal and expanding its operations in Côte d'Ivoire, where it operates its flagship Seguela gold mine. These initiatives are part of an overall strategy to diversify its assets in the face of regulatory and security uncertainties in certain countries in the region.

Ganoza's comments reflect the strategic adjustments made by mining companies in response to the changing landscape in West Africa. The military juntas in power in Burkina Faso, Mali and Niger have introduced mining codes aimed at strengthening local control over resources, often accompanied by coercive measures. In Mali, foreign managers have been arrested and stocks of gold seized, while in Niger, a uranium site managed by France was confiscated in December 2024. In Burkina Faso, the junta has pledged to nationalise more industrial mines.

Against this backdrop, Guinea appears to be an attractive destination for mining investors, offering a balance between geological potential and relative stability. Fortuna's planned expansion could redefine its presence in West Africa, while sending a signal to other players in the mining industry about the emerging opportunities in the region.