Niger’s military government has nationalised the country’s sole industrial gold mine, Société des Mines du Liptako (SML), accusing its Australian operator, McKinel Resources Limited, of “serious breaches” and mismanagement.
The decision was announced on state television by junta leader General Abdourahamane Tiani, who justified the move as necessary to promote the full appropriation of Niger’s natural resources by its people.
McKinel Resources Limited acquired an 80 per cent stake in SML in 2019, purchasing the shares from the Société du Patrimoine des Mines du Niger (Sopamin).
The Niger government, however alleged that the Australian company failed to implement a $10 million investment plan, leading to tax and wage arrears among others.
The junta cited these failures as evidence of McKinel’s mismanagement, claiming the mine had fallen into an “alarming economic situation” under the company’s control.
General Tiani emphasised that nationalisation would allow Niger to regain control over its strategic resources and promote economic sovereignty.
“In view of serious breaches (and) with a view to saving this highly strategic company, the state of Niger has taken the decision to nationalise SML an order from junta leader, Tiani, read on state television on Friday.
“This measure is in line with the vision of the president of the republic, which is to promote the full appropriation of its natural resources by the Nigerien people, ” he said.
The nationalisation of SML is part of a broader trend in the Sahel region, where military-led governments have increased pressure on foreign mining companies.
In June, Niger nationalised the local branch of French uranium giant Orano, sparking tensions with the company.
The move may strengthen Niamey’s hand in renegotiating mining and energy contracts but could also deter foreign investors concerned about the country’s security and political climate.
The SML mine has faced security challenges, including a bomb blast in May that killed at least eight workers in the Tillaberi region.
The Niger army deployed over 2,000 soldiers to combat jihadist groups in the region.
In 2023, industrial gold production at the mine totaled 177 kilograms, while artisanal production nationwide reached 2.2 tonnes, according to the Extractive Industries Transparency Initiative.
