Niger Nationalises Only Industrial Gold Mine, Citing Breach of Contract
The government of Niger has announced the nationalisation of its only industrial gold mine, accusing the Australian operator, McKinel Resources Limited, of failing to meet key obligations under its investment agreement.
The mine, known as the Société des Mines du Liptako (SML), has been under foreign management for years but will now come under full state control.
In a statement issued on Saturday, the military-led administration alleged “serious breaches” by the company, including its failure to implement a $10 million investment plan. Authorities said this neglect had led to tax arrears, unpaid wages, worker layoffs, and the suspension of mining operations.
The government stressed that the decision was part of efforts to protect national interests and ensure that resource wealth benefits the Nigerien people.
This move comes just weeks after Niger nationalised the SOMAIR uranium mine, previously operated by French nuclear giant Orano, following disputes over production shares and contract terms. Orano had been accused of extracting more than 86% of uranium output despite holding only about 64% ownership in the venture.
Niger’s decision reflects a growing wave of resource nationalism across the Sahel, where military-led governments in countries such as Mali and Burkina Faso are pushing for greater control of their mineral wealth.
In recent months, these states have revoked mining licences, restructured contracts, and moved to reclaim assets from foreign operators, citing the need for economic sovereignty.
The gold mine nationalisation is expected to have both domestic and international repercussions, potentially affecting investor confidence while bolstering the government’s standing among supporters who view the move as a step toward reclaiming economic independence. For Niger, it marks another significant shift in its resource policy, signalling that strategic mineral assets will no longer be left in foreign hands without strict compliance to agreed terms.
