Niger’s military government has taken control of the country’s only industrial goldmine, accusing its Australian operator of “serious breaches” and mismanagement, as the junta moves to assert greater control over strategic natural resources.
In an order read on state television on Friday, junta leader General Abdourahamane Tiani announced the nationalisation of Société des Mines du Liptako (SML), operated by McKinel Resources Limited since 2019. The company acquired a majority stake from a public firm that year.
“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,” the order stated. “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.”
The SML mine, located on the banks of the River Niger, produced 177 kilograms of industrial gold in 2023, according to the Extractive Industries Transparency Initiative. Artisanal miners in the country produced a further 2.2 tonnes.
The junta alleged that under McKinel’s management, the mine’s economic state had become “alarming,” citing the failure to execute a $10 million investment plan. It said the shortfall had resulted in tax and wage arrears, layoffs, increased debt, and production stoppages.
In June, Niger also nationalised the local branch of French uranium giant Orano, in a move mirroring actions by military-led governments in neighbouring Burkina Faso and Mali, who have increased pressure on foreign mining companies.
The mine has also faced security challenges. In May, a bomb blast in the Tillaberi region, one of the epicentres of jihadist violence in the country, killed at least eight SML workers. The Nigerien army has deployed more than 2,000 soldiers to combat jihadist groups in the region.
The military junta, which seized power in a 2023 coup, vowed to tighten control over the country’s mineral wealth while addressing security and economic instability.
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