Niger Nationalises Country’s Only Industrial Gold Mine

The Nigerien government has taken control of the Société des Mines du Liptako (SML), the nation’s only industrial gold producer, citing severe financial mismanagement under its Canadian owner, McKinel Resources Limited.

The decision, announced Friday, follows what authorities described as an “alarming economic situation” at the mine. According to an official decree from the government, the nationalisation aims to “save this highly strategic company” and ensure Niger’s natural resources are “fully appropriated by the Nigerien people.”

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.

Government officials accused McKinel of failing to honour a $10 million investment plan, a shortfall they say led to mounting debt, persistent salary arrears, and repeated shutdowns in production. The workforce has been cut by half, while tax obligations have gone unmet.

Now the government plans to repay the debt, find reliable partners and ensure stable employment for businesses,” according to a report.

SML, located in the Liptako region, is a key contributor to Niger’s economy and the only large-scale industrial gold producer in the country. This move is part of a broader trend in the Sahel region, reviewing and renegotiating mining contracts to increase state participation and control. Notably, Niger nationalised the local branch of French uranium producer Orano in June.

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