Niger Republic‘s military government has now taken over the country’s only industrial gold mine. They are accusing the Australian company running it of “serious breaches” as they try to have more control over natural resources.
The military has been in charge since a coup in 2023, and they promised to handle Niger’s many security problems.
In recent times, military groups in Niger and nearby Burkina Faso and mali/">Mali have been making things tough for foreign mining companies. Back in June, Niger took over the local branch of the French uranium company, Orano.
McKinel Resources Limited, an Australian company, started managing the Societe des mines du Liptako (SML) gold mine in 2019, after buying most of it from a public company.
“Given serious breaches (and) to save this highly strategic company, the state of Niger has decided to nationalise SML,” declared junta leader, General Abdourahamane Tiani, on state TV on Friday.
Resource Ownership and Economic Challenges
“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,” the order stated. In 2023, the mine produced 177 kilograms of industrial gold, while local miners produced 2.2 tonnes in total, as reported by the Extractive Industries Transparency Initiative.
Niger’s government said that since McKinel took over SML, the mine has been struggling financially.
They blame the Australian company for not carrying out its promise of a $10 million investment. This has caused unpaid taxes and wages, layoffs, growing debt, and halted production.
Security Concerns
In May, a bomb in west Niger’s troubled region killed at least eight workers at the SML mine in Tillaberi.
To tackle the violence in the area plagued by jihadists, the army has sent over 2,000 soldiers there.
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