Mali and Niger Actions Pose Risks to Western Mining Interests

Western mining companies in Mali, Niger, and Burkina Faso face growing challenges as military juntas escalate efforts to renegotiate mining contracts and assert control over resources. Recent actions include the arrest of mining executives in Mali, threats to revoke permits in Burkina Faso, and the seizure of a French-run uranium site in Niger. These moves coincide with surging gold and uranium prices and a regional shift toward Russia, creating uncertainties for investors and insurers. Mali, Africa’s second-largest gold producer, has implemented a new mining code, triggering disputes over tax payments and mining contracts. Meanwhile, insurers have significantly raised premiums for projects in the region due to heightened risks. Though mining production remains stable, analysts warn that companies already operating in the Sahel face increasing pressure, raising doubts about long-term stability and the region’s investment attractiveness.

SOURCE: REUTERS