Niger announces nationalisation of its only gold mine
The military junta has ruled the West African nation since seizing power in a 2023 coup, promising to crack down on Niger's myriad security issues.
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NIAMEY - Niger's military government has announced the nationalisation of the country's sole industrial gold mine, accusing its Australian operator of "serious breaches" as the junta seeks greater control of natural resources.
The military junta has ruled the West African nation since seizing power in a 2023 coup, promising to crack down on Niger's myriad security issues.
Juntas in Niger, neighbouring Burkina Faso and Mali have ramped up pressure on foreign mining companies in recent years, with Niger nationalising the local branch of French uranium giant Orano in June.
Australian group McKinel Resources Limited took control of the Societe des mines du Liptako (SML) gold mine, situated on the bank of the River Niger, in 2019 after purchasing a majority stake from a public firm.
"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," said an order from junta leader, General Abdourahamane 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," it said.
In 2023, industrial gold production at the mine amounted to 177 kilograms, while artisanal production in the country totalled 2.2 tonnes, according to a report by the Extractive Industries Transparency Initiative.
Niger's junta said since McKinel's takeover of SML, the mine has fallen into an "alarming economic situation".
It criticised the Australian firm for failing to implement a $10 million investment plan which the junta said has led to tax and wage arrears, worker layoffs and "significant increased debt", as well as production stoppages.
In May, a bomb blast in jihadist-riven west Niger killed at least eight workers at the SML mine in the Tillaberi region.
The army has deployed more than 2,000 soldiers to fight the jihadist groups in the surrounding region, at the epicentre of the violence wracking the country.