Sanctioned Kenyan gold dealer Kamlesh Pattni signs new deal with Niger Gov't

The government of Niger has entered into a joint venture with Kamlesh Pattni, a controversial Kenyan businessman previously sanctioned by the United States and the United Kingdom, to establish a gold refinery and gemstone processing hub in the capital, Niamey.

The agreement, signed on Wednesday, April 23, between Niger and Dubai-based Suvarna Royal Gold Trading LLC, where Pattni serves as CEO, paves the way for the creation of Royal Gold Niger SA — a new company that will install a gold refinery, jewellery manufacturing plant, and gemstone polishing centre.

The signing ceremony took place at Uranium House, with Niger’s Minister of Mines, Commissioner-Colonel Abarchi Ousmane, and Minister of Budget Mamane Sidi in attendance. Pattni personally initialed the documents on behalf of Suvarna.

Despite his international reputation — which includes alleged involvement in Kenya’s infamous Goldenberg scandal and fresh sanctions slapped on him in 2023 for his alleged role in a gold smuggling network — Pattni was received with full honours in Niamey, as Niger pitched the project as a bold step toward economic sovereignty.

“From now on, Niger’s gold will not only be extracted; it will be transformed here, for the benefit of Nigeriens,” said Mines Minister Ousmane, hailing the deal as a “structural revolution.”

He said the partnership is part of Niger’s broader efforts, under the National Council for the Safeguarding of the Fatherland (CNSP), to retain control of its mineral wealth and build a fully integrated mining value chain — from extraction to processing and marketing.

While artisanal gold mining has provided income to Nigerien families since the 1950s, authorities say it’s time to formalise the sector, curb smuggling, and boost national revenues.

"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," added Ousmane.

According to him, "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 during the signing.

Suvarna, the company Pattni leads, is registered in Dubai and specialises in gold trading and precious metals recycling.

Under the deal, the Nigerien government will hold equity in the joint venture — a move officials say ensures national oversight and long-term benefits.

“Thanks to this partnership, we are not just signing an agreement — we are making history,” the minister said.

Despite the accolades in Niamey, Kamlesh Pattni is a polarising figure. Known in Kenya for his central role in the Goldenberg scandal of the 1990s — a scheme that allegedly siphoned hundreds of millions from the public coffers — Pattni reinvented himself in the gold trade, shifting base to Zimbabwe and Dubai.

In 2024, the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions on Pattni for his alleged role in a global gold smuggling and money laundering network based in Zimbabwe.

According to US authorities, Pattni allegedly led a sophisticated network that facilitated illicit activities by bribing officials, employing trusted supporters to obscure ownership, and constructing an intricate web of businesses to conceal illegal operations.

Who is Kamlesh Pattni?

Kamlesh Mansukhlal Damji Pattni first came to global attention in the 1990s during Kenya’s Goldenberg scandal, a Ksh.13.5 billion corruption case involving the manipulation of export incentives and bribery of senior government officials.

Although Pattni denied any wrongdoing, he fled Kenya amid mounting scrutiny and eventually shifted his operations to Zimbabwe.

In Harare, Pattni maintained a lavish lifestyle, forging close ties with then-president Robert Mugabe and replicating schemes similar to those he allegedly orchestrated in Kenya.

Operating between Harare and Dubai, he expanded his illicit activities to include gold and diamond exports.

Pattni, who reportedly converted to Christianity and adopted the name “Brother Paul,” also became a preacher, though his alleged illegal dealings continued unabated.

The UK also joined the US in targeting Pattni’s operations.

In a broader effort to combat money laundering and disrupt Russia’s use of illicit gold to evade sanctions and finance its war efforts, the UK imposed asset freezes on five individuals, including Pattni and his enablers.