Support from the African Development Bank, to the tune of $150 million, will enable SNIM to implement a logistics capacity expansion program of $467 million in order to double the transport capacity of its railway iron ore by 2030.
The Board of Directors of the African Development Bank Group approved, on November 29, a senior loan of $150 million to the National Industrial and Mining Company (SNIM) to increase its logistics capacity and strengthen the sector. mining of Mauritania.
The Bank’s support will enable SNIM to implement a $467 million logistics capacity expansion program to double the transport capacity of its iron ore railway by 2030.
According to a press release, the investment program paves the way for the production of higher value-added products, such as iron ore pellets. It plans to build a 12 MW photovoltaic solar power plant, as the company embarks on the path to decarbonization of its activities.
This initiative highlights the African Development Bank Group’s commitment to fostering sustainable economic growth and promoting inclusive development in Mauritania.
« This program is a key precursor for SNIM’s future growth as a producer of high-quality iron ore and will facilitate its downstream integration. It represents a significant step forward for the Mauritanian mining sector and will enable the creation of a true regional industrial hub in the medium term”said Solomon Quaynor, African Development Bank Group Vice President for Private Sector, Infrastructure and Industrialization.
The project is also able to bring significant social and economic benefits, including empowering communities, creating jobs, particularly for youth and women, and establishing new regional partnerships.
As part of this funding, the Global Adaptation Center, through the Africa Adaptation Acceleration Program, will provide technical assistance to SNIM in the form of a detailed risk assessment of the changes climate for its logistics and operations. This will make it possible to determine the adaptation measures to be implemented by the company to ensure a future resilient to climate change.
SNIM is a long-standing partner of the Bank and has a considerable positive impact on the Mauritanian economy. In 2023, it generated around 9% of GDP, 14% of public revenue and 37% of the value of exports. The company is Mauritania’s largest company and Africa’s second-largest iron ore producer.
It employs 6,750 people, a large number of whom are young people. It invests significantly in initial training programs for young people and in continuing professional development opportunities for staff, most of whom are internally trained.
It is increasingly supplying its products to the North African region, thereby increasing intra-African trade. By supporting SNIM, the African Development Bank is supporting an African champion for growth and development towards a more sustainable, resilient and high value-added future.
« This logistics expansion project is very important for SNIM. It will allow us to bring our planned production projects closer to the execution phase. The significant support from the African Development Bank is therefore greatly appreciated and will serve as a catalyst for our future growth “, declared Mohamed Vall Mohamed Telmidy, CEO of SNIM and member of the company’s Board of Directors.
TE/ac/Sf/APA
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