NIAMEY, Niger — Niger’s military government has taken over the country’s only industrial gold mine from Australian firm McKinel Resources Limited, accusing the company of multiple “serious breaches” of its operating agreement.
The announcement was made on August 8, 2025, in a televised decree read by junta leader General Abdourahamane Tiani. The move is another bold step in the regime’s bid to tighten control over strategic natural resources.
The mine, located in western Niger and operated by Société des Mines du Liptako (SML) since 2019, has been struggling financially. According to the government, McKinel defaulted on a $10 million investment pledge, leading to missed tax payments, unpaid salaries, staff layoffs, growing debt, and even a complete halt in gold production.
Security concerns have also plagued operations. In May, an attack by jihadists in the Tillabéri region left at least eight mine workers dead. In response, authorities deployed more than 2,000 soldiers to secure the area.
Official figures from 2023 show that industrial production yielded just 177 kilograms of gold, while small-scale artisanal miners produced around 2.2 tonnes, underscoring the mine’s relatively low output.
The takeover follows a broader regional pattern, as neighbouring Mali and Burkina Faso have also nationalised key mining operations in recent years, seeking greater control over their mineral wealth and reducing foreign dominance in the sector.
Credit: Business Insider Africa
