Added regional focus key in miner’s strategic priorities

Owing to the evolving West African mining landscape, solidifying its presence in countries such as Côte d’Ivoire, Senegal and Burkina Faso is a key strategic priority, reports Canadian precious metals miner Fortuna Mining.

There is no other region in the world that exhibits the kind of growth in gold reserves and gold production than West Africa over the past 20 years, notes Fortuna Mining president, CEO and director Jorge Ganoza.

“If we account for the gold production that is coming out of Ghana, Mali, Burkina Faso, Guinea, Côte d’Ivoire and Senegal, that adds about 470 000 t to gold production. This relatively small region equates to the size of countries such as France and Belgium combined, and produces more gold than continental- sized nations,” he explains.

Fortuna competes in a segment of midtier producers and, while acknowledging the presence of major, well-capitalised gold producers in the region – including multinational gold mining companies Endeavour Mining and Barrick Gold – it has identified West Africa as a region that is not well-populated with midtier peers.

Regarding the economic activity and growth potential of Fortuna’s West African operations, Ganoza highlights the company’s 2024 guidance for Séguéla mine, noting that it is expected to produce up to 138 000 oz of gold, while the Yaramoko mine is expected to produce up to 119 000 oz.

He adds that the company has a vast exploration programme and stresses the importance of having a sizable replacement of gold reserves.

“Across our global portfolio this year, we are investing about $47-million in exploration, funding close to 200 000 m of drilling, and the largest recipient of that budget is the Séguéla mine,” highlights Ganoza.

Fortuna aims to strategically position itself throughout the precious metals price cycle and endorses West Africa as an attractive mining region owing to its status as a low-cost mining jurisdiction.

“Today we are a company that produces almost 500 000 gold-equivalent ounces per year, and 55% of that production comes from West Africa, with the balance coming from our Latin American operations. Two-thirds of our cash margins come from West Africa, and this has been a key strategic move for us and one which we continue to extract value from,” he states.

Jurisdictional Challenges, Sustainability Goals

Security remains a key issue, particularly in Burkina Faso, where Fortuna operates the Yaramoko mine, notes Ganoza.

Despite the mine producing 117 711 oz of gold in 2023, political instability, illegal mining and smuggling, conflicts over land rights and environmental degradation pose significant challenges to the company’s mining operations.

Fortuna continues to invest within the borders of its operations but cautions that the company must be tactical about how it deploys capital in this region.

Meanwhile, sustainability reporting has become a key component of effective and transparent communication. In this regard, the company’s reporting goals are driven by its intent to make critical evaluations on water efficiency, climate change risks and tailings management in line with the Global Industry Standard on Tailings Management.

In 2004, Fortuna consumed about 1 m3 of fresh water drawn from natural sources for every tonne of ore it processed. Today that number has reduced to 0.2 m3/t.

Fortuna outlines that sustainability is a key pillar in its communications strategy and through its materiality assessments, it can focus on what is relevant and material to its business and stakeholders.

The entire mining industry, notes Ganoza, has paid close attention to the growing demands of surrounding mining communities, especially regarding sustainability and he believes that it has done a good job in listening to stakeholders and sharing crucial efficacy information.

Further, the company has been involved in various sustainability projects. Fortuna has, for example, outlined the development of its Sustainability National Partnership Programme (SNPP), in Côte d’Ivoire, as central to assisting in the country’s national development plan objectives.

The SNPP prioritises quality healthcare and education, the promotion of gender equality, clean water and sanitation, combatting climate change, and advocating for peace and justice.

The company has been working closely with the central government of Côte d’Ivoire to develop a cataract project which has screened over 3 900 people and contributed funding for 948 eye operations to help people regain their eyesight, since 2023.

With respect to projects proximal to Fortuna’s West African operations, Ganoza asserts that the company focuses on understanding the development goals of its neighbouring communities, while making efforts to assist accordingly as a strategic partner in articulating its aspirations and achieving its goals.