Kamlesh Pattni inks gold refinery deal with Niger despite global sanctions

Kenyan businessman Kamlesh Pattni, long associated with high-profile financial scandals and sanctions, has signed a new agreement with the government of Niger to establish a major mineral processing hub in Niamey.

The project includes plans for a gold refinery, a gemstone centre, and jewellery manufacturing plant under a new company, Royal Gold Niger SA.

The joint venture was formalised on Wednesday, in a high-profile signing ceremony at Uranium House.

Representing the Nigerien government were Minister of Mines Commissioner-Colonel Abarchi Ousmane and Minister of Budget Mamane Sidi, while Pattni signed on behalf of Suvarna Royal Gold Trading LLC, a Dubai-based company where he serves as Chief Executive Officer.

Despite facing international sanctions and lingering controversy over his past dealings, Pattni was warmly welcomed by Nigerien authorities.

The new venture is being portrayed as a transformative step in the country's efforts to control and add value to its mineral resources.

"From now on, Niger’s gold will not only be extracted; it will be transformed here, for the benefit of Nigeriens," said Minister Ousmane, who described the initiative as a "structural revolution."

According to the minister, this collaboration is central to the broader mission of the National Council for the Safeguarding of the Fatherland (CNSP), which aims to ensure full control of the country's natural wealth, from extraction to refining and marketing.

Gold mining, particularly artisanal operations, has supported Nigerien households since the 1950s.

However, authorities say the time has come to regulate the industry, eliminate smuggling, and increase revenues through local processing.

"This signature is not a simple administrative or commercial act; it embodies a firm political will, driven by the highest authorities of the refoundation, to make the mining sector a real lever of sovereignty, prosperity, and national dignity," Ousmane added.

He also explained that, "this partnership with Suvarna is part of the strategic vision of our mining policy, dedicated to the development of the mining chain. Through him, we are laying the foundations for an integrated national economy, where every gram of gold transformed in Niger generates value for our people."

"This partnership is in line with Niger’s vision for sustainable development," Pattni said.

Suvarna Royal Gold Trading LLC is registered in Dubai and is engaged in gold trading and the recycling of precious metals.

The agreement ensures that the Nigerien government will retain equity in the joint venture, a move designed to secure national interests and long-term benefits.

"Thanks to this partnership, we are not just signing an agreement, we are making history," Minister Ousmane declared during the event.

The return of Pattni to the global spotlight through this venture comes amid ongoing concerns surrounding his business past.

Known for his key role in Kenya’s Goldenberg scandal in the 1990s, Pattni was accused of helping siphon billions through a fraudulent export compensation scheme.

Though he has always denied wrongdoing, the controversy led him to relocate from Kenya and set up operations in other countries, including Zimbabwe and the United Arab Emirates.

In 2024, the United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions on Pattni, citing his involvement in a global gold smuggling and money laundering network believed to be headquartered in Zimbabwe.

US authorities allege that Pattni led a complex network involving bribery, the use of front companies, and hidden ownership structures to disguise the true nature of his operations and avoid detection.

Pattni, who now calls himself "Brother Paul" after a reported conversion to Christianity, had also previously forged close ties with former Zimbabwean President Robert Mugabe.

In Zimbabwe, he allegedly ran schemes that mirrored his operations in Kenya and expanded his reach to diamond and gold exports.

His presence in Niamey and involvement in the high-stakes Niger deal has once again raised eyebrows, especially given the backdrop of renewed scrutiny from Western governments.

The UK has also taken action, joining the United States in imposing asset freezes on Pattni and several associates.

The sanctions were part of broader efforts to crack down on money laundering and disrupt networks allegedly used by Russia to evade economic sanctions and fund its military ambitions through illicit gold sales.