The Niger Military Junta confiscated the gold mine of the Australian company
The military junta in Niger has announced that it has taken back control of the Samira Hill mine, one of the country’s largest industrial gold mines in the west, from an Australian company. The government cited the mine’s inactivity for over two years as the reason for this decision.
Revocation of Operating License and Its Justifications
In an official statement following a Cabinet meeting, it was announced that the mining license held by Société des Mines du Niger (SMN), a subsidiary of the Australian Stock Exchange-listed company West African Resources (WAF), had been revoked. The government spokesperson stated: “This decision was taken because the company failed to meet the terms of its mining contract and has not carried out any operational activity on site for more than two years.” It was emphasized that this situation violated Niger’s mining laws.
The Samira Hill mine is located about 90 kilometers west of the capital Niamey, in the Tillaberi region, where security issues are widespread. The mine has been closed since 2021.
History of the Mine and the Company’s Plans
The Samira Hill mine was previously operated by the Canadian companies Semafo and later Endeavour Mining. West African Resources (WAF) acquired the mine from Endeavour Mining in 2021. Although the company stated that it had conducted various technical and economic studies and prepared a feasibility report to restart operations, the junta government found these efforts insufficient.
The Niger junta announced that it is seeking “reliable partners” to operate the mine and aims to ensure that the country’s resources are used for the benefit of the Nigerien people. This move follows similar actions by the military governments in neighboring Mali and Burkina Faso, who have been reviewing and scrutinizing mining contracts. It is seen as part of a growing trend of resource nationalism in the Sahel region.
Conclusion
The Niger military government’s seizure of one of the country’s key gold mines on the grounds of contract violations serves as a significant warning to international companies operating in the region. This incident once again highlights the fragility of the investment climate in politically unstable countries. The efforts of Sahel juntas to increase control over national resources have a direct impact on global commodity markets and investor confidence.
From Turkey’s perspective, the country’s growing political and economic ties with Africa in recent years make it essential to closely monitor such developments. In particular, Turkish companies are increasing their presence in construction, energy, and trade in Niger and neighboring countries. This event is a critical precedent for Turkish firms considering investment in Niger’s mining sector or already operating in the region. It underscores once again the importance of carefully analyzing political risks and local legal frameworks in target countries. While no Turkish company has yet shown interest in this specific mine, the redistribution of resources in the region may present both risks and opportunities for Turkish investors in the future.