The military regime in Niger has declared that the nation’s only industrial gold mine will be nationalized, citing “serious breaches” by its Australian operator as the junta aims to gain more authority over land. Since taking over in a coup in 2023, the military junta has dominated the West African country, vowing to address Niger’s numerous security concerns.
With Niger nationalizing the local branch of the French uranium giant Orano in June, juntas in neighboring Burkina Faso, and Mali have increased pressure on international mining firms in recent years.
After acquiring the majority stake from a public company, the Australian company McKinel Resources Limited took over the Societe des mines du Liptako (SML) gold mine, located on the bank of the River Niger, in 2019.
The junta leader, General Abdourahamane Tiani, issued an order on Friday that was broadcast on state television: “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”
It stated that this action is consistent with the president of the republic’s goal of encouraging the Nigerien people to fully appropriate its natural resources.
According to a report by the Extractive Industries Transparency Initiative, the mine produced 177 kilograms of industrial gold in 2023, compared to 2.2 tonnes of artisanal gold produced nationwide. According to Niger’s junta, the mine has been in a “alarming economic situation” ever since McKinel acquired SML.
The Australian company was criticized for not carrying out a $10 million investment plan, which the junta claimed resulted in production stoppages, worker layoffs, tax and wage arrears, and “significant increased debt.”
