Editor’s Note
This report details the latest step in Niger’s state takeover of its mining sector, with the nationalization of a key gold mining company. The move underscores a significant shift in resource governance.
The state’s takeover of the national mining sector continues in Niger. To this end, the President of the Republic, Head of State, Army General Abdourahamane Tiani, signed an ordinance and a decree on Friday, August 8, 2025.
The ordinance concerns the nationalization of the Société des Mines du Liptako (SML-SA), a company active in gold mining in Niger. The government justifies this nationalization by SML SA’s failure to comply with several contractual commitments towards the State of Niger, including the non-realization of investments, the accumulation of tax and salary arrears, the placement of employees on technical unemployment followed by their dismissal, despite all necessary facilities granted to it by the State of Niger.
As for the decree, it concerns the suspension of the export of certain mineral substances. Under this decree, the export of precious stones, semi-precious stones, and meteorites is prohibited throughout the national territory. However, the decree specifies that exemptions from this measure may be granted by order of the Minister in charge of Mines, upon request from interested parties. These exemptions will be granted on a case-by-case basis in the interest of the country. Violators of the provisions of this decree are subject to the sanctions provided for by the Mining Law.
These two decisions are part of the new dynamic initiated by the National Council for the Safeguard of the Homeland (CNSP) with a view to Niger’s appropriation of its national resources and their exploitation for the benefit of Niger and its people. They come a few weeks after the nationalization of SOMAÏR, a now former subsidiary of ORANO.
His Excellency Army General Abdourahamane Tiani, President of the Republic, Head of State, has signed an ordinance for the nationalization of Société des Mines du Liptako (SML) SA.
SML SA, a company under Nigerien law, holds two (2) permits for large-scale gold mining, namely the Samira Libiri permit renewed by decree of November 20, 2019 for a period of 5 years and the Boulondjounga permit.
In May 2019, the Société de Patrimoine des Mines du Niger (SOPAMIN), a state-owned company, transferred 80% of its shares in Société des Mines du Liptako (SML) SA to the McKinel Resources Limited group, through a share transfer agreement. In return, the McKinel Resources Limited group had committed to restructuring and developing SML SA by mobilizing significant financial resources and respecting various operational, financial, and social commitments. Thus:
– The McKinel Resources Limited group committed to providing the necessary means for the resumption of SML SA’s mining operations;
– The Ministry in charge of Mines committed to renewing conventions and granting permits requested by SML SA for exploration and ensuring the continuity of operations at SML SA.
Six (6) years after this share transfer, serious breaches of contractual obligations by the McKinel Resources Limited group and an alarming economic situation of SML SA have been observed.
Regarding breaches of contractual obligations, a global investment plan including an indicative investment plan of at least 10 million US Dollars, which should have been developed within three (3) months of taking control, was never provided by this company.
The non-compliance with this commitment had immediate consequences: the accumulation of tax and salary arrears, leading to a lack of visibility on the mineral reserves to be exploited and significant debt, aggravated by the absence of new investments.
It should also be noted that SML SA owes several tax debts to the State of Niger.
In total, the debt situation of SML SA at the end of November 2024 had the following consequences, among others:
– Partial operation of the mine and the plant, with repeated stoppages;
– Placement of employees on technical unemployment followed by their dismissal, thus reducing SML SA’s workforce by more than 50%;
– Non-payment of salaries on time, lack of health and life insurance coverage;
– Non-payment of contributions to the National Social Security Fund, thus exposing employees to unprecedented precariousness;
– Supply disruptions on the site.
For its part, the State of Niger granted all necessary facilities for a better resumption of this company’s activities.
In view of these shortcomings, with the aim of saving this highly strategic enterprise, the State of Niger has decided to nationalize SML SA. This measure is fully in line with the vision of the President of the Republic, Head of State, which is to promote the full appropriation by the Nigerien people of their natural resources.
Done in Niamey, August 8, 2025
The Secretary General of the Government
Mahamane Roufai Laouali
His Excellency Army General Abdourahamane Tiani, President of the Republic, Head of State, has signed a decree suspending the export of certain mineral substances.