Niger’s military government has taken control of the country’s only industrial gold mine, accusing its Australian operator of “serious breaches” as it moves to tighten its grip on national resources.
The announcement was made Friday on state television by military leader General Abdourahamane Tiani, who seized power last year after ousting former President Mohamed Bazoum in an overnight coup.
The junta said the mine, run by Société des Mines du Liptako (SML), is in an “alarming economic situation.”
In an official order, General Tiani stated: “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.”
He added, “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.”
Authorities accused the mine’s operator, McKinel, of failing to follow through on a $10 million investment plan, leading to tax and wage arrears, layoffs, mounting debt, and a halt in production.
According to the Extractive Industries Transparency Initiative, SML produced 177 kilograms of industrial gold in 2023, while artisanal miners across Niger produced about 2.2 tonnes.
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Mining operations in Niger have also been disrupted by security threats.
In May, a bomb explosion at the SML site in the Tillaberi region, an area plagued by jihadist activity, killed at least eight workers.
In response, the army deployed more than 2,000 soldiers to fight insurgent groups in the region, which remains a key front in the country’s security crisis.
The decision to seize the gold mine is part of a wider pattern across West Africa, where military-led governments have been reasserting state control over natural resources by reviewing and renegotiating mining contracts.
In June, Niger nationalised the local subsidiary of French uranium giant Orano.
In Mali, the military government that came to power after the 2020 coup pushed Canadian mining company IAMGOLD and others to increase local ownership and meet higher investment requirements.
It also reexamined contracts with Hummingbird Resources and Randgold Resources to secure better terms for the state.
Guinea’s junta has applied similar pressure on operators such as Société Minière de Boké (SMB) to boost local stakes and ensure the country benefits more from bauxite exports.
In 2022 and 2023, Burkina Faso’s ruling juntas also demanded greater contributions from companies, including Endeavour Mining, which runs some of the nation’s largest gold mines.
However, unlike Niger’s move toward outright nationalisation, Burkina Faso, Mali, and Guinea have generally focused on renegotiating contracts and tightening oversight rather than fully seizing assets.
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Image Credit: Channels TV