Authorities say the move aims to preserve a highly strategic mine after McKinels actions caused debts, unpaid wages, and shutdowns

Niger's transitional government has nationalized the country's only industrial gold mine, accusing its Australian-owned operator of "grave contractual breaches" and failure to honor a promised $10 million investment plan.

The West African country's interim president, Abdourahamane Tchiani, signed the nationalization order on Friday for the Societe des Mines du Liptako (SML SA), majority-owned by Australian firm McKinel Resources Limited. The move formally vests control of SML in the Nigerien state, an official communique published by the Nigerien Press Agency (ANP) confirmed.

Authorities said the decision was taken to preserve a "highly strategic" enterprise after years of financial strain, unpaid salaries and taxes, and repeated operational shutdowns at the country's only industrial gold mine.

SML began operations in 2004 at the Samira Hill deposit in western Niger, with McKinel acquiring its majority stake of 80% in 2019 from the Nigerien state-owned entity SOPAMIN. Under the takeover agreement, the company was required to submit an investment plan within three months to restore and expand production.

"Six years after this transfer of shares, serious breaches of contractual obligations by the McKinel Resources Limited group and an alarming economic situation for SML SA have been noted," the government stated, adding that the firm "owes several tax debts."

"As part of the breaches of contractual obligations, a global investment plan including an indicative investment plan of at least $10 million, which should be drawn up within three months following the takeover, was never provided by this company," it added.

The latest move is the second major resource seizure by the military government in recent months. In June, Niamey took over Somair, a uranium mining venture operated by French state-owned nuclear fuel company Orano, after accusing the firm of "irresponsible, illegal, and unfair behavior."

The former French colony's military leadership has moved to curb foreign dominance in the country's extractive industries and reclaim control over key resources since the 2023 coup.

On Friday, the authorities also announced a temporary suspension of exports of precious and semi-precious stones and meteorites, with exceptions granted only in special cases.

(RT.com)