Niger military government announced on August 8, 2025, the nationalisation of the Société des Mines du Liptako (SML), the country’s only industrial gold mine, citing serious breaches of contract and neglect by the Australian operator McKinel Resources Limited.
The decision marks another step by the junta to tighten control over Niger’s natural resources amid long-standing concerns about foreign companies’ management and to ensure the strategic gold mine’s survival.
McKinel Resources took control of SML in 2019 after acquiring a majority share from a state-owned entity. However, the company failed to fulfill an investment plan of at least $10 million promised shortly after their takeover. This failure triggered economic decline at the mine, including unpaid taxes and workers’ salaries, mass layoffs, mounting debts, and production halts. Gold production at the Samira Hill gold mine, operated by SML, has plummeted to just 177 kilograms in 2023 far below its estimated capacity of 618,000 ounces over a six-year lifespan.
In a televised statement, Niger’s military junta leader, General Abdourahamane Tchiani, declared: “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.”
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The move is part of a broader strategy to enhance national sovereignty over critical resources. Niger recently also nationalised its uranium mining operations, previously controlled by French company Orano.
Given the current gold price of roughly $3,414 per ounce, the mine’s potential output represents a significant economic asset, estimated to be worth around $2.1 billion. The government’s intervention aims to revive production and stabilise the mine’s finances while ensuring that benefits better serve Niger’s population, who have long seen limited advantages from resource extraction.
The nationalisation reflects a growing trend in West Africa, where governments are increasingly asserting control over key mining assets to address concerns over foreign management and economic sovereignty amid security challenges in the region.
Niger plans to compensate the former shareholders, taking into account obligations such as site rehabilitation, but insists on tighter oversight and decisive action to restore the mine’s positioning as a strategic economic asset for the nation.
VANGUARD
