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entities. The higher local content requirements could potentially increase operational costs for mining companies, opting to continue operations in Guinea.
Niger Following a military coup, Niger has also revised its mining legislation. The changes were initiated by the 2022 Mining Code and amended in 2023, regulating all aspects of mineral and fossil substances. The reaction of the new government of Niger was more dramatic with the revocation of licenses. The military government has since revoked the mining licenses of French company Orano and Canadian company GoviEx Uranium for their Imouraren and Madaouela projects, respectively. This led to a short-lived overheating of the global uranium market to secure the supply of yellow cake.
The abrupt revocation of licenses highlights the increased political and regulatory risks for Western mining companies operating in Niger, with other reports suggesting that there has been an increase in activity by Eastern and Russian mining entities in the country.
Senegal Senegal ' s 2016 mining code grants the state the right to acquire additional shares in mining companies up to 25 % of the share capital for consideration. Senegal followed other countries in the region by announcing their intention to renegotiate contracts in 2024. Following the election of a new president in March 2024, Senegal announced its intention to renegotiate key contracts in the mining( as well as oil and gas) sectors to increase transparency.
In July 2024, Senegal’ s president was tasked with trying to ensure that juntas in Mali, Niger and Burkina Faso do not withdraw from ECOWAS.
Make or break? A wave of resource nationalism is evident across West Africa, often exacerbated by political instability and military coups. Governments are increasingly seeking greater control over their natural resources, viewing it as crucial for economic development and national sovereignty. In addition, there has been a notable increase in state participation. Amended mining legislation frequently includes provisions for increased state ownership or participation in mining projects, often through newly established state-owned mining companies.
In parallel there has been an emphasis on an increase in local content. New laws often mandate greater local content in terms of employment, procurement of goods and services, and even ownership.
The least disruptive initiatives have been the renegotiation of existing agreements, where West African governments are increasingly seeking to renegotiate existing mining agreements that they deem unfavourable, aiming for better fiscal terms and greater benefits for the state. In more extreme cases, operations have been expropriated, gold production confiscated and highranking company officials arrested.
The unpredictable nature of policy changes and the potential for unilateral decisions increase the regulatory risk for Western mining companies operating in the region. The nationalisation measures and contract renegotiations have the potential to trigger international investment disputes. Some African states have already faced arbitration proceedings related to mining reforms. The trend of resource nationalism can negatively impact investor confidence, potentially leading to a decrease in foreign direct investment in the mining sector in the long term.
Mining nationalisation in West Africa is a dynamic and evolving landscape. While driven by understandable aspirations for greater economic benefits and resource sovereignty, these policies pose significant challenges and risks for mining companies operating in the region. Navigating this environment requires a deep understanding of the specific legislative changes in each country, proactive engagement with governments, and a careful assessment of the evolving political and regulatory landscape. The long-term effects of these nationalisation efforts on both the mining industry and the economic development of West African nations remain to be seen. This may signal the end of the golden era mining in West Africa, or a new dawn for the way mining is done there. •
Reference:
1. https:// www. barrick. com / English / news / news-details / 2025 / barrickopposes-mali-government-attempt-to-take-over-the-day-to-dayoperations-at-loulo-gounkoto / default. aspx. In June 2025 an ICSID arbitration process had commenced.
Dr Nicolaas C Steenkamp is an independent consultant, specialising in geological, geotechnical and geometallurgical projects and mining project management. He has over two decades of industry experience with global exposure. ncs. contract @ gmail. com
Supplied by Dr Nicolaas C Steenkamp
20 • African Mining • August 2025 www. africanmining. co. za