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Canadian mining firm looking for gold opportunities in

Guinea

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Fortuna faced security, regulatory challenges in Burkina

Faso

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Exploration budget raised, with a portion allocated to

Guinea

By Maxwell Akalaare Adombila

DAKAR, May 5 (Reuters) - Canada's Fortuna Mining ( FSM )

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.

Fortuna, which is not currently established in Guinea, is

looking for gold mining opportunities there, conducting site

visits and meeting with authorities, Ganoza said.

"We find Guinea to be a place we would invest today," Jorge

Ganoza said by video call.

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.

BURKINA EXIT

Fortuna announced last month it was exiting Burkina Faso

with the sale of the Yaramoko gold mine to a private local

company for $130 million.

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 $7 million, Ganoza said. In

other jurisdictions he said such costs are between $200,000 and

$300,000.

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 $51 million in exploration

and project development this year, up from $41 million 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.