African Development Bank Approves $150 Million Loan to Boost SNIM's Railway Capacity
The African Development Bank (AfDB) has officially approved a substantial loan of US$150 million to the state-owned iron ore company, Société Nationale Industrielle et Minière (SNIM).
This funding is aimed at supporting an ambitious US$467 million program designed to double the capacity of SNIM's heavy haul railway by the year 2030. As part of this initiative, the company plans to acquire up to 36 locomotives and 1,743 wagons, significantly enhancing its operational capabilities. "This program is a crucial precursor to SNIM’s future growth as a producer of high-quality iron ore and will facilitate its downstream integration," stated Solomon Quaynor, the bank’s Vice-President for Private Sector, Infrastructure & Industrialisation, on December 17.
He emphasized that this initiative represents a significant advancement for Mauritania’s mining sector and will contribute to establishing a genuine regional industrial hub in the medium term. The project will also incorporate climate resilience measures, with the Global Centre on Adaptation tasked with conducting a thorough climate change risk assessment.
Additionally, the program will feature elements focused on community empowerment and job creation, specifically targeting young people and women in the region. In 2023, SNIM played a vital role in Mauritania’s economy, contributing approximately 9% of the nation’s Gross Domestic Product (GDP), 14% of government revenue, and accounting for about 37% of the country's export value. These figures underline the company's significance not only in the mining industry but also in the broader economic landscape of Mauritania. Furthermore, SNIM has initiated legal action against tour operators that are illegally offering desert excursions involving rides on ore wagons.
The company has made it clear that its trains are equipped with designated coaches for passengers and that it does not authorize travel aboard ore wagons, citing concerns for the safety and health of travelers. This stance highlights SNIM's commitment to ensuring safe transportation options while maintaining the integrity of its operations.