Mauritania: National Industrial and Mining Company (SNIM) and the Nouadhibou Port
SNIM is the second largest African producer of iron ore and a major player in the country's economy. Its representative sales accounted for about 9% of Mauritania's GDP in 2016. The port of Nouadhibou, which allows the company to transport its iron ore, is in fact a key part of the country's economy. However, the depth currently available in the access channel limits the size of the vessels that can anchor in the ore terminal. Ships that can dock at the current terminal account for only 6% of the world's available bulk carrier fleet, significantly increasing costs due to limited availability. Moreover, the maximum tonnage that can be loaded on these boats is currently limited to 150 000 tonnes.
The Bank’s Investment
The African Development Bank Group, in partnership with the European Investment Bank (EIB), has concluded financing of USD 50 M and EUR 50 M respectively, over 12 years with the National Industrial and Mining Company (SNIM), to support the capacity increase of the port facilities of the SNIM in Nouadhibou, the economic capital of Mauritania. The project includes the deepening and widening of access channels of the mineral terminal of SNIM over 25 km, with the aim of reaching the required depths of 230,000 tonnes for ships. By allowing larger vessels to dock in Nouadhibou, SNIM will be able to increase the efficiency of its transport chain while reducing costs, becoming more profitable, more competitive in the international market and more resilient. fluctuations in world iron ore prices. This will contribute to the improvement of its profitability, competitiveness and resilience in the international market in the face of fluctuations in world iron ore prices.
Economic and social benefits
The project will create 94 full-time jobs during the construction phase and 230 indirect jobs. while generating significant income for the Mauritanian government (by way of taxes and dividends). The SNIM Foundation will also benefit from this funding for its social activities in Mauritania.
This will enable the country to pursue its growth strategy in other key sectors.