Mining boost for Mauritania
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Mining boost for Mauritania
A USD150-million injection from the African Development Bank Group will strengthen Mauritania’s mining sector.
By Leon Louw founder of WhyAfrica and editor of the WhyAfrica magazine.
The African Development Bank Group (AfDB) has approved a USD150-million loan to Mauritanian state-owned iron ore firm Société Nationale Industrielle et Minière (SNIM) to increase its logistics capacity and strengthen the country’s mining sector.
The approval is part of SNIM’s USD467-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 12MW photovoltaic solar power plant as part of decarbonising efforts.
According to Solomon Quaynor, AfDB’s Vice President for Private Sector, Infrastructure and Industrialisation the investment represents a significant step forward for Mauritania’s mining sector and will help establish a true regional industrial hub in the medium term.
SNIM plays a critical role in Mauritania’s economy. In 2023, it contributed close to 9% of GDP, 14% of government revenue, and 37% of export value.
As Africa’s second-largest iron ore producer and Mauritania’s largest company, SNIM employs 6,750 people. The company is a major driver of intra-African trade, increasingly supplying iron ore to North African markets.
Mauritania’s rail network
Mauritania’s rail network is focused on transporting mineral resources, especially iron ore, from the interior to the coast.
The primary rail system in Mauritania is known as the Mauritania Railway (Société des Chemins de fer de Mauritanie, or CFM). The Mauritania Railway’s most important line is the Nouadhibou to Zouerate route, which is dedicated to transporting iron ore from the mines near Zouerate in the northern part of the country to the port city of Nouadhibou. This is a 704 km long single-track railway. The route is one of the longest in the world dedicated solely to iron ore transport.
The railway can carry up to 16 million tons of iron ore annually. It plays a central role in Mauritania’s mining industry. The railway uses heavy-duty freight trains, some of which are extremely long, with up to 200 wagons per train, making them some of the longest trains in the world. The trains are powered by diesel engines, and the rail gauge used is 1,000 mm (narrow gauge), which is typical for the region.
At the port of Nouadhibou, iron ore is transferred from the trains to large bulk carriers for export. This port is Mauritania’s primary outlet for iron ore exports, which primarily go to countries like China.
The importance of mining
The mining industry is one of the largest contributors to Mauritania’s GDP. It accounts for around 20-25% of the country’s Gross Domestic Product (GDP), making it a major economic driver. This is a substantial portion, highlighting its importance in the national economy.
Currently Mauritania has 15 active mines, primarily focusing on iron ore, gold, and copper. Several significant exploration projects are underway in the country.
Mining boost for Mauritania
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