KEY POINTS
- AfDB’s $150 million loan supports SNIM’s logistics upgrade, doubling iron ore railway capacity and enhancing Mauritania’s mining sector by 2030.
- SNIM’s sustainability focus includes a 12 MW solar plant and climate risk assessments to align with global decarbonization goals.
- The expansion creates jobs, promotes intra-African trade, and positions Mauritania as a regional industrial hub with enhanced economic integration.
African Development Bank’s Board of Directors has sanctioned a significant $150 million loan to SNIM, with the goal of boosting the country’s mining sector, a cornerstone of Mauritania’s economy.
The loan will enable the expansion of the company’s logistics infrastructure, including a strategic initiative to double its iron ore rail capacity by 2030.
SNIM advances premium iron ore production
The funding is part of SNIM’s broader $467 million logistics expansion project, which aims to enhance the production and export of higher-value-added products, such as iron ore pellets.
The move underscores the company’s shift toward premium product offerings while integrating sustainability into its operations through plans to build a 12 MW photovoltaic solar power plant, marking a crucial step in its decarbonization strategy.
Solomon Quaynor, the African Development Bank Group’s Vice President for Private Sector, Infrastructure, and Industrialization, highlighted the project’s role in strengthening Mauritania’s position in regional industrialization. “This program is pivotal to SNIM’s transition to a premium iron ore producer and will facilitate its downstream integration, setting the stage for Mauritania’s emergence as a regional industrial hub,” Quaynor remarked.
Beyond the mining sector, the initiative promises broad socio-economic benefits. The expansion, as reported by AfricanMiningMarket, will generate significant employment opportunities, particularly for youth and women, and enhance Mauritania’s role in intra-African trade, with growing exports to North African markets.
Climate resilience and regional impact
A critical component of the project is its focus on climate resilience, backed by technical assistance from the Global Center on Adaptation through the Africa Adaptation Acceleration Programme. This includes a climate risk assessment of SNIM’s logistics and operations, ensuring that climate adaptation measures are integrated into the expansion efforts.
SNIM, a longstanding partner of the AfDB, is integral to Mauritania’s economic framework, contributing around 9% of the country’s GDP, 14% of government revenue, and 37% of export value. As Africa’s second-largest iron ore producer, the company employs 6,750 workers, many of them young, and is a key driver of Mauritania’s economic growth.
In addition to its domestic impact, SNIM’s growing exports are vital to expanding intra-African trade, reinforcing the company’s strategic role in regional economic integration. The AfDB’s support for SNIM’s logistics expansion aligns with the Bank’s broader mandate to foster inclusive and sustainable economic growth across the continent.
SNIM’s growth trajectory and future prospects
SNIM’s CEO, Mohamed Vall Mohamed Telmidy, emphasized the crucial role of AfDB’s support in enabling the company’s long-term growth trajectory. “This logistics expansion project is a critical enabler for our production goals,” he said. “The unwavering support from the African Development Bank is a catalyst for our future success, positioning us to achieve our strategic objectives.”
With the AfDB’s backing, SNIM is poised for continued growth, with the logistics expansion serving as a key driver for its transformation into a major regional industrial player. The project underscores the importance of sustainable development in Mauritania’s mining sector, enhancing the country’s prospects for economic diversification and long-term resilience.
