The government of Niger has taken decisive action to nationalize Société des Mines du Liptako (SML) SA, marking the second major mining nationalization in two months as part of a broader policy of economic sovereignty following the July 2023 coup.
This step comes after McKinel Resources Limited, the majority shareholder, failed to meet critical investment obligations.
President of Niger signed an order transferring ownership of SML, which holds gold mining permits for the Samira Libiri and Boulondjounga sites, back to the state after McKinel Resources did not fulfill a $10 million investment pledge made at the time of its 2019 acquisition of an 80% stake from the state mining company SOPAMIN.
Six years on, the company has yet to present an investment plan, accruing significant tax debts, unpaid salaries, and operational shutdowns.
“The accumulation of tax arrears and salary non-payments, along with repeated production stoppages, led to a drastic reduction in workforce and technical unemployment affecting more than half of the employees,” said the Secretary General of the Government.
Workers also suffered from lack of insurance coverage and social security payments, highlighting the neglect under McKinel’s management despite state concessions.
This nationalization follows the government’s similar move in June to take control of Société des Mines de l’Aïr (SOMAIR SA), a uranium mining subsidiary previously majority-owned by the French company Orano.
The government cited “irresponsible and illegal” actions by Orano since the 2023 coup, including abrupt repatriation of French nationals, attempts to halt production, and unilateral termination of licenses.
Orano has since appealed to the International Centre for Settlement of Investment Disputes (ICSID), contesting the loss of operational control.
The nationalization entails the full transfer of shares and assets to Niger, with compensation to former shareholders in line with legal frameworks. SOMAIR’s board has been dissolved, and transitional management appointed.
These moves underscore Niger’s determined shift toward economic sovereignty, reaffirmed by the recent exit from defense agreements with France and joining the Alliance of Sahel States. The government aims to ensure that Niger’s vast natural resources directly benefit its people amid ongoing political realignments and regional challenges.
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