(MENAFN) Niger’s transitional administration has taken over the nation’s only industrial gold mine, accusing its Australian-owned operator of “grave contractual breaches” and failing to fulfill a pledged $10 million investment plan.

The interim president of the West African country, Abdourahamane Tchiani, signed the nationalization decree on Friday for Societe des Mines du Liptako (SML SA), which is primarily owned by the Australian company McKinel Resources Limited.

This action officially transfers control of SML to the Nigerien government, as confirmed in a statement released by a news agency.

Officials explained that the move was aimed at safeguarding a “highly strategic” asset after enduring years of financial difficulties, including unpaid wages, tax arrears, and multiple stoppages of operations at the country’s sole industrial gold mining site.

SML commenced its activities in 2004 at the Samira Hill deposit in western Niger. McKinel acquired an 80% majority stake in 2019 from the state-owned SOPAMIN.

According to the acquisition terms, the company was obligated to present an investment plan within three months to revitalize and increase production.

The government declared, “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,” further stating that the company “owes several tax debts.”

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