The Board of Directors of the African Development Bank Group (www.AfDB.org) has approved a $150 million senior loan to Mauritanian state-owned iron ore firm Socit Nationale Industrielle et Minire (SNIM) to increase its logistics capacity and strengthen the countrys mining sector.The approval, granted on November 29, is part of SNIMs $467 million logistics expansion program, which aims to double the transport capacity of its iron ore railway by 2030.The investment will enable the company to produce higher value-added products, such as iron ore pellets, and includes plans to construct a 12 MW photovoltaic solar power plant as part of decarbonizing efforts. The initiative also underscores the African Development Bank Group's commitment to fostering sustainable economic growth and promoting inclusive development in Mauritania.This program is a crucial forerunner of SNIM's future growth as a producer of high-quality iron ore and will facilitate its downstream integration, said Solomon Quaynor, the Bank Groups Vice President for Private Sector, Infrastructure and Industrialisation. It also represents a significant step forward for Mauritania's mining sector and will help establish a true regional industrial hub in the medium term.Quaynor highlighted the project's broader social and economic benefits, including community empowerment, job creation, particularly for youth and women, and the development of new regional partnerships.The project also includes climate resilience measures. The Global Center on Adaptation, through the Africa Adaptation Acceleration Programme (http://apo-opa.co/3VIEC50), will provide SNIM with technical assistance, conducting a comprehensive climate change risk assessment for its logistics and operations. This will help the company implement necessary adaptation measures to ensure a sustainable future.SNIM, one of the Banks long-standing partners, plays a critical role in Mauritanias economy. In 2023, it contributed around 9 percent of GDP, 14 percent of government revenue, and 37 percent of export value. As Africas second-largest iron ore producer and Mauritanias largest company, SNIM employs 6,750 people, many of whom are young. The company is a major driver of intra-African trade, increasingly supplying iron ore to North African markets.By supporting SNIM, the African Development Bank is fostering the development of a regional industrial leader, advancing sustainability and resilience in the sector.This logistics expansion project is extremely important for SNIM, said Mohamed Vall Mohamed Telmidy, CEO of SNIM. It will bring the production projects we have planned closer to the implementation phase. The steadfast support of the African Development Bank is invaluable and will serve as a catalyst for our future growth.Distributed by APO Group on behalf of African Development Bank Group (AfDB).Media contact: Romaric Ollo HienCommunication and External Relations Departmentmedia@afdb.orgMedia filesDownload logo
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