On Monday, November 2, 2026, in Paris, Mauritania's Minister of Mines and Industry, Diuld Wolde Zein, oversaw the signing of a significant agreement between the National Industrial and Mining Company (SNIM) and Essar. This deal pertains to the transportation of iron ore through Mauritania's national railway network. The agreement is part of a partnership aimed at securing transportation and logistics services for Essar Capital Mauritius Limited, which is set to begin exploiting its mining license in the Askav region of Tiris Zemmour.
The agreement is expected to play a crucial role in facilitating the transportation of iron ore, which will be produced at a rate of 7.5 million tons annually. This production is anticipated to commence within the next six months. The project is not only expected to boost the national production of iron ore but also to create approximately 2,000 jobs during the construction and installation phases of the mine.
From an economic and operational perspective, this agreement represents a strategic gain for SNIM. It will allow the company to make greater use of its railway infrastructure, improve the return on its fixed assets, and diversify its revenue streams. Additionally, the partnership will enable SNIM to reduce operational costs, share the expenses of regular railway maintenance, and enhance economies of scale, thereby supporting the sustainability and financial and operational efficiency of its logistics system.
This development marks a significant shift in Mauritania's mining sector investment and logistics landscape. For the first time, private sector actors will have the opportunity to utilize the national railway line. This move is expected to accelerate the valuation of national resources, expand and diversify the production base, and combine service investment with mineral investment.
The Essar Capital Mauritius Limited is preparing to start its mining operations in the Askav region. The region's mineral wealth is substantial, and the commencement of these operations is anticipated to have a positive impact on Mauritania's economy. The partnership between SNIM and Essar is a testament to the growing interest in Mauritania's mining sector and the potential for collaboration between public and private entities.
The national railway network plays a vital role in Mauritania's mining sector, and this agreement will ensure its optimal utilization. The deal also underscores the government's efforts to enhance the country's infrastructure and create a favorable business environment. As the mining sector continues to grow, the demand for efficient transportation systems will increase, making this agreement a timely and strategic move.
The implementation of this agreement is expected to have a lasting impact on Mauritania's economy and mining sector. With the production of 7.5 million tons of iron ore annually, the country is poised to become a significant player in the global iron ore market. The creation of jobs and the stimulation of economic growth will be crucial in driving Mauritania's development forward.
Key points
- The agreement between SNIM and Essar will facilitate the transportation of 7.5 million tons of iron ore annually via Mauritania's national railway network.
