National Industrial and Mining Company, (SNIM), is a main actor in the field of extractive industries in Mauritania. It exploits the iron ore deposits located in the north of the country. These deposits contain a total reserve estimated at over one billion tons.

As a backbone of the Mauritanian economy, (SNIM), formerly MIFERMA, has, since the 1970s, produced between 11 and 13 tons of iron ore annually, mainly exported to China.

The income of these activities constitutes a main source for the state budget, which owns 78% of this economic giant which represents an employment center with more than 6,000 employees.

Historic rise

In the past two years, the prices of the iron ore exported by the company (concentrate 62%) have attained an all-time high record, reaching nearly $ 220 per ton, an increase of about 100% compared to the figures of January 2020.

This unexpected increase would allow SNIM to repay its debts and carry out its development project, which essentially aims to improve production, to reach 24 million tons by 2026.

This program is based on major projects, mainly:

∙ The production increase of the Guelb2 plant to 4 million;

∙ The current dredging project for the Nouadhibou mineral port;

∙ The rehabilitation and modernization of the Guelb1 plant;

∙ Rehabilitation of handling infrastructure in Rweissa to produce 2 million tons;

∙ The development of the production of the F’derick project which would have to generate 3 million tons;

∙ The construction of a new factory in Tzargaf to produce 6 million tons.

Serious challenges

The company should seize this opportunity to achieve these ambitious goals, instead of directing its revenues to other projects outside the development plan of the company, like what happened in 2014, when it tapped the cash flow to build a prestigious headquarters and subsidized the construction work of an airport.

The new favorable price winds could turn the objectives into reality, by mobilizing the necessary financing to carry out the projects of the development of production and the modernization of industrial systems inside the company.

But the achievement of this objective requires the establishment of a strict implementation plan, equipped with monitoring means and transparent management systems and focused on results.