Mauritania’s National Industrial and Mining Company (SNIM) is set to receive a US$150 million loan from the African Development Bank (AfDB) to increase its rail logistics capacity and to strengthen the country’s mining sector.

The 704km railway operated by SNIM mainly transports iron ore from the Zouerate mines in northern Mauritania to the Port of Nouadhibou on the North Atlantic Ocean, and also transports passengers.

The AfDB funding will enable the acquisition of larger wagons and newer locomotives, resulting in an estimated fuel efficiency gain of 10%, along with equipment.

In addition, a rolling stock maintenance workshop will be built as well as rail facilities and roads. These include two locomotive depots, a 30km slip road to the El-Aouj mine station and a 12km slip road to the Atomai mine station, both locations at which SNIM plans mining schemes.  

The financing will also help finalise the construction of a 12MW power plant in Zouerate next to the railway line, which was 80% complete as of August 2024. The facility is part of SNIM’s decarbonisation goals.

Moreover, the AfDB-supported project will support SNIM in capturing more of the value chain via commencing the production of iron ore pellets, a product for which demand is increasing as the steelmaking industry transitions towards cleaner processes.

“This logistics expansion project is very important for SNIM. It will enable us to bring our planned production projects one step closer towards the execution phase,” said SNIM CEO Mohamed Telmidy.

The scheme is in turn part of SNIM’s US$467 million logistics expansion programme, which aims to double the railway’s capacity by 2030, thus facilitating the company’s plans to increase production of iron ore to 40 million tonnes a year by 2030. Mauritania is thought to be endowed with an estimated 10 billion tonnes of relatively easily exploitable and good-quality iron ore.

The independently managed publicly owned SNIM has been operating for over 61 years and is now Africa’s second-largest iron ore producer.  In 2023, the company recorded annual sales of more than 14 million tonnes of iron ore, generating an estimated 9% of Mauritania’s GDP, 14% of government revenue and 37% of export value.

Alongside the hike in output, SNIM plans to gradually develop local processing capacity to process 31% of the ore produced by 2031, targeting 40% by 2038 and 45% by 2045.

According to the AfDB, the programme represents a significant step forward for Mauritania’s mining sector and will allow for the creation of a regional industrial hub over the medium term.

Photo: SNIM railway (Source: AfDB)