Mauritania's Minister of Mines and Industry, El Dy Ould Zein, on Monday presided in Paris over the signing of an agreement between the national mining company SNIM and Essar on transporting iron ore over the national railway network, a first in the history of the country's mining sector, according to the ministry.
The mines and industry ministry said the agreement is meant to provide transport and logistics services to Essar Capital Mauritius Limited, which is preparing to start working its mining licence in the Askaf area of the Tiris Zemmour region.
The project is expected to start actual production within six months, with a capacity of 7.5 million tonnes a year, and to create about 2,000 jobs during construction of the mine and its facilities.
The ministry said the partnership should bring operational and financial gains to SNIM by making better use of its rail infrastructure, raising revenue and cutting operating costs, as well as sharing the burden of periodic track maintenance and achieving economies of scale.
It stressed that the agreement opens the national railway network to private companies for transporting minerals for the first time, supporting the development of natural resources, widening the production base and backing economic diversification.
