Niger’s military government has taken over the country’s sole industrial gold mine, saying the Australian operator failed to meet investment and operational obligations and left the site in an “alarming economic situation.”
Announcing the move on state television, junta leader Gen. Abdourahamane Tiani signed an order nationalizing SML, framing the takeover as part of a broader push to place Niger’s natural resources “under the full appropriation of the Nigerien people.” Officials accused the operator, identified as McKinel, of reneging on a $10 million investment plan, triggering tax and wage arrears, layoffs, debt accumulation, and a halt in production.
Industrial output at SML reached just 177 kilograms in 2023, according to the Extractive Industries Transparency Initiative, while Niger’s artisanal miners produced roughly 2.2 tonnes. Security pressures have compounded the mine’s troubles: in May, a bomb blast in the jihadist-plagued Tillaberi region killed at least eight workers, prompting the army to deploy more than 2,000 soldiers to secure the area.
The nationalization fits a pattern across West Africa, where military-led governments have moved to rewrite the rules of extraction. Niger already seized the local arm of French uranium producer Orano in June. In Mali, post-coup authorities have pressed foreign miners—such as IAMGOLD and others—to increase local ownership and upgrade commitments. Guinea has leaned on bauxite operators, including SMB, for greater state benefit. Burkina Faso has pursued tougher terms with companies like Endeavour Mining. Most of those governments have focused on contract rewrites and tighter oversight; Niger is going further with outright takeovers in select cases.
Supporters of the shift say it will keep more value onshore and stabilize strategic assets during a security crisis. Critics warn it risks scaring off capital, slowing output, and inviting legal battles. For now, the message from Niamey is clear: the state intends to call the shots on gold—and, where it deems necessary, on other resources as well.
