*

Regional mining remains profitable despite risks, says

lobby

group

*

Miners face security and regulatory instability

*

Surging gold price reinforces localisation push

By Maxwell Akalaare Adombila

DAKAR, April 30 (Reuters) - International mining

companies should consider joint ventures with local partners and

dual listings on regional stock exchanges to navigate an

increasingly complex landscape in West Africa, the head of a

regional lobby group said.

Military-led governments across West Africa have upended the

mining sector by rewriting contracts, detaining executives and

suspending operations as they demand greater control over

natural resources.

Mining companies also face growing security challenges from

jihadist groups that have forced the suspension of some

exploration activities.

The new reality means big miners must adapt, including by

meeting governments' growing demands for localisation, Adama

Soro, president of the West African Federation of Chambers of

Mines, told Reuters.

Dual listings on regional exchanges and joint ventures with

local partners could go a long way towards strengthening these

companies' positions, he said.

"We're pushing at the regional level to get dual listing on

the regional stock market ... so that the local investor can

also benefit," Soro said. "The big companies are open, they know

this is the reality (and) you can't go against the winds."

Despite regulatory changes affecting major players such as

Barrick, Endeavour, Resolute Mining ( RMGGF )

and Fortuna in Mali and Burkina Faso, West Africa's

mineral wealth continues to attract global interest.

The region boasts deep reserves with Ghana, Mali and Burkina

Faso collectively accounting for over 10% of worldwide gold

production in 2024, while Guinea dominates global bauxite

exports.

"Operating a mine in Africa is more profitable. Other

regions have stability but (are) less profitable," Soro said.

Record gold prices this year, fuelled by U.S. President

Donald Trump's trade policies and geopolitical uncertainty, have

escalated tensions among stakeholders, Soro said.

"When you have the gold price rising, you see all

stakeholders trying to pull everything to their side," he said.

"The best thing is to have open discussions."

Soro said national governments and international mining

companies seem to be on board with his group's push for

increased localisation, but the capacity of the region's stock

markets remains a challenge.

Nevertheless, he predicted some local listings could occur

soon, without providing details.