The African Development Bank (AfDB) has recently approved a $150 million loan to the Société Nationale Industrielle et Minière (SNIM), Mauritania’s largest company, aimed at increasing its logistics capacity and strengthening the country’s mining sector. This financing marks a key step in the strategic development of SNIM, which plans to double its iron ore transport capacity by 2030.
An Ambitious Logistics Expansion Program
This loan is part of a $467 million logistics expansion program that SNIM will implement. The primary goal of this initiative is to significantly increase the capacity of the railway transporting iron ore, thus supporting the growth of mining production, especially in higher-value products such as iron ore pellets.
Additionally, SNIM will integrate a 12 MW photovoltaic solar power plant into its infrastructure, furthering its commitment to energy transition and decarbonizing its operations. This project highlights the importance of logistics infrastructure to support the mining industry in Mauritania while adhering to the country’s environmental commitments.
Significant Economic and Social Impact
The implementation of this project will have significant repercussions on Mauritania’s economy. In 2023, SNIM accounted for approximately 9% of the national GDP, 14% of public revenues, and 37% of export value. Through this expansion, the company continues to strengthen its strategic role in the mining sector while developing local capacities and fostering community empowerment.
This program will also contribute to job creation, particularly for young people and women, while facilitating the establishment of new regional partnerships, thereby boosting intra-African trade.
A Resilient Approach to Climate Challenges
As part of this financing, the Global Center for Adaptation (GCA), through the Africa Adaptation Acceleration Program (AAAP), will provide technical assistance to SNIM. The goal is to conduct a detailed assessment of the climate risks that could affect the company’s logistics operations. This analysis will help define the necessary adaptation measures to ensure the company’s resilience to long-term environmental challenges.
Strategic Support for Future Growth
Solomon Quaynor, Vice President of the African Development Bank Group for the Private Sector, Infrastructure, and Industrialization, emphasized the importance of this project as a “key precursor for SNIM’s future growth as a producer of high-quality iron ore.” He also added that this program represents a significant advancement for Mauritania’s mining sector and paves the way for the creation of a regional industrial hub in the medium term.
Mohamed Vall Mohamed Telmidy, CEO of SNIM, expressed the company’s gratitude for the support from the African Development Bank, noting that this financing will serve as a crucial catalyst for the execution of the company’s planned production projects.
The loan granted by the African Development Bank to SNIM marks a strategic turning point for the mining sector in Mauritania. By strengthening logistics infrastructure and supporting innovative, environmentally sustainable projects, this financing paves the way for a more sustainable and prosperous future for the country and the region. SNIM, as a leader in the mining sector, plays a crucial role in Mauritania’s economic transformation, and this support will enhance its position as a key player in Africa’s mining growth.
