Reclaiming Resource Sovereignty: Mali, Burkina Faso, and Niger’s Movement Against Foreign Mining Companies

 

By Adama Traoré

The Sahel region of West Africa, consisting of Mali, Burkina Faso, and Niger, has taken significant steps towards reclaiming its mining sector from foreign entities. This move reflects a growing sentiment of resource nationalism, where governments prioritise national interests over foreign profits.

Recently, the Malian government announced that the Yatela gold mine, previously exploited by foreign companies, is now entirely under the control of the Malian state. This recovery, the result of a retrocession agreement, is part of a political desire to strengthen national control of the country’s natural resources.

By putting an end to dependence on foreign players, Mali intends to maximise the profits from the exploitation of its subsoil and guarantee a better redistribution of wealth for the benefit of the population.

In Niger, which is the fourth largest producer of Uranium in the world, the government recently revoked the operating licence of several French companies, who it says have been “looting its mineral resources to develop France.”

Orano, the French uranium mining company, announced that they are leaving Niger. Niger’s military leader, General Abdourahamane  Tchiani, had warned them that the structure under which they had operated in the country over the years would not continue.

The company complained that the current level of hostility they are facing, is unlike anything they have ever faced in their 53 years in Niger.

In Burkina Faso, the government announced the withdrawal of industrial exploitation permits of four mines. At on of the weekly ministerial session in Mid-October presided by Burkinabè president, Captain Ibrahim Traoré, under the ministry of energy, mines and quarries, the council came up with four decrees to withdraw industrial exploitation permits of four mines.

By the decrees, the government withdrew the industrial exploitation permit for the large Perkoa zinc mine, from the company Nantou Mining Burkina Faso SA, a subsidiary of the Canadian firm Trevali Mining, in the province of Sanguié, Central-West region, due to the company’s failure to follow mining rules, leading to flooding of its mines on April 16th, 2022, leaving many people dead.

The Burkinabè government also withdrew the industrial exploitation permit for the large Yéou gold mine, from the company Nordgold Yéou SA in the commune of Bouroum, Namentenga province in the country’s Central-North region, citing as reason the expiration of the company’s operational license on March 13, 2020, and its inability to provide a complete file for renewal, in accordance with government regulations.

The government decree also ordered the withdrawal of the industrial exploitation permit for a small gold mine from the company Komet Resources Afrique SA, in the communes of Guiro and Diouga, provinces of Namentenga and Séno, regions of Central-North and Sahel, which was due to the company’s continued mining without authorisation from the mining administration for more than two years.

In addition, mining taxes and royalties have not been paid since the acquisition of the permit by transfer in 2015. The firm was also found guilty in 2022 of fraud in the marketing of gold.

Exploitation permit was also withdrawn from the large gold mine of the Indian mining firm, Baladji Group Mining Kalsaka (BGMK) SA, in the commune of Kalsaka, Yatenga province, Northern region, for not being able to justify their technical and financial capacity to continue operations.

According to the government, the withdrawal of these permits would allow the State to seek new investors for the continuation of mining activities and to promote economic recovery in these areas.

This renewed desire for sovereignty has been bolstered by increasing public discontent over the perceived exploitation by multinational corporations.

For decades, Mali, Burkina Faso, and Niger have attracted foreign mining companies, drawn by the rich deposits of gold, uranium, and other minerals. These companies often struck lucrative deals, gaining access to resources while local communities saw minimal benefits.

Mali illustrates this reality quite vividly. The country consolidated its status as a major producer of gold, selling nearly 70 tons, an increase of 8.4%, in 2022. These exports generated about US$3.4 billion. Despite these increased financial resources, the problem of income restructuring between private companies and governments has persisted.

Mining companies, most of them multinationals, are suspected of practicing tax evasion through the transfer of profits. In fact, in a number of countries, there is a gap between, on the one hand, the importance of the mining industry in the national economies, the considerable amounts of investments made, the weight of the sector in exports and, on the other hand, the low revenues collected by the State, a report explains.

At the forefront of this exploitation is France, a country that has the fourth largest gold reserves of 2,436 tons, without a single gold mine.

In contrast, Mali, which has 860 gold mines and produces 50 tons per year, did not have any gold reserves in its banks.

A number of factors have played a crucial role in shaping this historical context. For a long time, foreign firms primarily focused on the extraction of resources with little regard to community development.

While they implemented their strategies, local populations suffered from poverty and underdevelopment even with their resource wealth.

The situation was compounded by frequent changes in government and management of resources, leading to misaligned interests between foreign investors and national priorities.

The initiative to reclaim mining activities is rooted in multiple socio-economic and political factors. The most prominent is economic independence. The Sahel states aim to strengthen their economies by tapping into their own resources.

By reclaiming mines, the authorities say, they hope to increase revenues by redirecting profits back into local economies, funding infrastructure and social programs.

The decision is also intended to foster local employment opportunities through the establishment of national mining companies. As in the Yatela mine, the government will transfer ownership to the state-owned Mali Mineral Resources Research and Development Corporation, which was created by the junta in 2022 to ensure that “gold shines more for all Malians”.

Citizens of these states have increasingly voiced dissatisfaction with foreign mining practices. This reclamation serves to empower communities by ensuring local benefits from natural resources. The governments say it also serves to promote transparency and responsibility among local and national authorities.

The presence of foreign companies has sometimes been associated with national security risks. By reclaiming mines, countries aim to minimise dependence on foreign entities that may withdraw abruptly in times of instability. They also aim to restore national pride and the sense of self-determination over national assets.

Several strategic actions have been taken to reclaim the mining resources from foreign firms. Among these are legislative reforms. New laws have been adopted to govern the mining sector more rigorously, including increased Royalties and Taxes, and setting higher financial contributions from foreign companies to improve national revenues.

There have also been reforms in local content requirements, with state authorities mandating that a percentage of services and goods be sourced locally.

The three states have also seen the formation or strengthening of state-owned mining companies aimed at direct Management of mining activities and ensuring alignment with national interests.

New Joint Ventures have also been initiated, encouraging partnerships with foreign companies while retaining majority control. On Tuesday October 22, Turkey signed an agreement with Niger on mining, after signing a similar cooperation agreement on oil and gas in July.

Turkey has acquired three mining sites and is expected to begin exploiting them by the end of the year.

Next month, with the express request from Mali, Russia will send explorer to assist Malians with exploration of Lithium and Oil, which Mali will in turn use to cover the cost of development project and improving it’s living conditions.

There is also the upcoming launch of the first Lithium mine in West Africa, with an investment of around 300 billion FCFA, in Mali. This mine will bring in more than 100 billion per year to the Malian state coffers. With this investment, Mali will become the leading producer of Lithium in Africa.

Even as these agreements signal a revival of more financially favourable local participation in the mining sector, some of the new partnerships have implied a more radical shift away from the traditional Western bloc.

There was obvious panic in the West in June after reports emerged of Iran’s efforts to secure a mining licence in Niger to harvest hundreds of tonnes of uranium a year. This disclosure sparked fears that Tehran planned to acquire larger stocks of uranium to further its nuclear weapons programme.

The reports followed diplomatic parley between Iran and Niger in which an alleged secret ‘yellow cake’ uranium deal was signed in late April for the delivery of 300 tons of uranium in exchange for drones and surface-to-air missiles for the Nigerièn armed forces.

The governments are also actively involving local communities and stakeholders in the decision-making process.

This new drive to reclaim sovereignty has seen, in the last two years, Mali, Niger and Burkina Faso storing more Gold in their reserves than they did in the past 50 years to 2022.

While the reclamation of mining sovereignty is a potent movement, it is not without its challenges. Some Multinational corporations are resisting these changes, citing contracts and investments.

Investment and mining experts caution that these moves may witness capacity constraints as local governments may face limitations in expertise and resources to manage mining effectively. They add that international dynamics could complicate relationships with foreign investors and donors.

The reclamation of mines by Mali, Burkina Faso, and Niger marks a pivotal moment in their pursuit of economic independence and reform. As these nations strive to take control of their natural resources, they navigate the complexities of foreign partnerships, community needs, and national objectives.

The path forward will require not only robust legislation and stakeholder engagement but also a commitment to developing local capacities. Ultimately, this movement hints at a broader trend towards resource nationalism across Africa, regional political observers hope, signalling a shift in the global mining landscape—one that may redefine power dynamics between nations and foreign corporations.