Post #153

💡Resource Nationalism Index [ NIGER ] In the light of the recent Niger-CNPC faceoff over local personnel employment, we decided to undertake a comprehensive overview of what Nigerien resource extraction policy framework look like through the prism ofour "Resource Nationalism Index" series. Today Niger mostly exports gold, crude oil and uranium (in the form of yellowcake). So, how has the Nigerien government been handling the natural wealth of the nation? 🔸"Process It First" – 6/10 – Miners have an obligation to carry out local processing within reasonable limits in accordance with the capabilities of the national economy, while the exact level of processing is specified in agreements and conventions. 🔸 "Share With the State” – 8/10 – The state reserves the right to purchase a portion of the products in proportion to its share in the mining project, and supplies of strategic minerals must first meet local demand. 🔸 “We’re in Too!” – 9/10 – The state receives 10% of the shares in new enterprises for free, and the state has the right to buy another 30%. Another 30% share is set for local investors at some stages of production, but in general it is fixed in conventions. 🔸 “The Money's Yours, the People Are Ours" – 9/10 – All unqualified positions are reserved for citizens of Niger - for the rest, companies are required to seek to replace all positions with local residents. Also, foreign workers may stay in office for no more than 4 years. 🔸“Just Pay Up" – 8/10 – In general, solid minerals tax is about 7%, and there is also a 2.5% tax on the exploitation of deposits. Every year, miners pay an additional extra tax, the amount of which is set annually by the state. The tax on oil is 12.5-15%. 🔸"You Come – You Build" – 6/10 – There are general obligations for the development of local communities, but their specific size is only defined in separate agreements. 🔸“We’ll Do It Ourselves” – 6/10 – Part of the mining revenue goes to the Fonds de développement minier, which co-finances exploration, state control and supervision, and the development of the mining sector. 🔸“Come Here, You Bast*rd!” – 6/10 – There are no serious problems with sovereignty over the deposits, but illegal gold mining is almost twice as high as legal (approximately 30t of undeclared gold exports vs. 14t of declared) Final score is 7.3 out of 10 — a little less that of Tanzania, but fairly good. Obligations to develop local communities, encourage local processing, and combat illegal gold mining are mostly sagging. #Niger#ResourceNationalism Devils Below