Niger’s military junta has taken a decisive step to assert control over the nation’s natural resources, announcing the nationalisation of the country’s only industrial gold mine. The move, targeting the Societe des mines du Liptako (SML) gold mine, comes as the junta, which seized power in 2023, seeks to address security challenges and strengthen economic sovereignty.
The mine, located on the banks of the River Niger, has been operated by Australian firm McKinel Resources Limited since 2019, following its acquisition of a majority stake from a public entity. However, the junta now accuses the company of “serious breaches,” prompting the government to intervene.
“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,” stated an order from junta leader, General Abdourahamane Tiani, broadcast on state television. The decision underscores the junta’s commitment to “promote the full appropriation of its natural resources by the Nigerien people.”
This nationalisation marks a significant shift in Niger’s economic policy, reflecting a broader trend across West Africa where governments are increasingly asserting control over key industries. The junta’s actions align with its stated goals of enhancing national security and economic independence, though the move may also signal a broader crackdown on foreign investment in strategic sectors.
The decision could have far-reaching implications for foreign investors in Niger, particularly in the mining sector. While the junta frames the nationalisation as a necessary step to safeguard national interests, critics may argue that it risks deterring future foreign investment, which has been crucial for the development of Niger’s mineral resources.
As Niger navigates its security and economic challenges, the nationalisation of SML highlights the delicate balance between asserting sovereignty and maintaining investor confidence. The junta’s actions will be closely watched by other resource-rich nations in the region, where similar debates over control of natural wealth are unfolding.
