Niger Signs Gold Refinery Deal With Sanctioned Kenyan Tycoon

• Apr 24, 2025

Niger has entered into a controversial gold refinery deal with Kenyan businessman Kamlesh Pattni, despite international sanctions. The agreement, signed on April 23, 2025, is part of Niger’s broader strategy to gain control over its natural resources and build economic independence.

Pattni, who has faced sanctions from both the United States and the United Kingdom, signed the agreement on behalf of his Dubai-based firm, Suvarna Royal Gold Trading LLC. Together with the Nigerien government, they will form a joint venture named Royal Gold Niger SA.

The new company plans to establish a gold refinery, jewellery production facility, and gemstone polishing centre in the capital, Niamey. The signing ceremony was held at Uranium House and attended by key government officials, including Niger’s Minister of Mines, Commissioner-Colonel Abarchi Ousmane, and Budget Minister Mamane Sidi.

Despite Pattni’s controversial background, which includes his central role in Kenya’s Goldenberg scandal and more recent allegations of gold smuggling and money laundering, Niger’s government welcomed him with full honours. They presented the deal as a bold step toward economic sovereignty.

Minister Ousmane praised the partnership as a “structural revolution” for the country’s gold industry. He said, “From now on, Niger’s gold will not only be extracted; it will be transformed here, for the benefit of Nigeriens.” He added that this deal supports the government’s goal of formalising the artisanal mining sector and curbing illegal gold smuggling.

The joint venture will include government ownership, which officials say will provide national oversight and ensure long-term benefits for the country. Ousmane stressed that the deal reflects a strong political will to use mining as a key driver of national prosperity and independence.

Pattni also addressed the event, stating that the partnership is aligned with Niger’s long-term development goals. “This partnership is in line with Niger’s vision for sustainable development,” he said.

However, the decision has drawn criticism due to Pattni’s track record. He was previously accused of masterminding the Goldenberg scandal in Kenya, a corruption case that allegedly drained billions from public funds in the 1990s. More recently, in 2024, the U.S. Treasury Department and the UK government imposed sanctions on Pattni for leading a gold smuggling and money laundering network.

The sanctions allege that Pattni used bribery and hidden ownership structures to conceal his involvement in illegal gold trade, with claims that the network helped fund Russia’s war efforts. Despite these allegations, Niger’s leadership sees the new venture as a historic move to build value within its borders.