Mauritania: National Industrial and Mining Company (SNIM)
Nouakchott, April 17, 2023: The Board of Directors of the National Industrial and Mining Company (SNIM) met in ordinary session on Monday April 17, 2023 in Nouakchott. He expressed his satisfaction with the results recorded by the company in 2022, in particular the level of sales which reached, for the first time, 13.35 million tonnes, for a target of 13.5 million tonnes.
He also welcomed the improvement in production operations, which allowed the tumbling of 12.8 million tonnes against 12.6 in 2021 (tonnage transported by rail).
The Board also welcomed the trade diversification policy, which has enabled access to emerging markets, particularly in North Africa and Eastern Europe.
The Board of Directors noted a decline in revenue of 23% compared to 2021, recording a value of $1.26 billion. Net income, which stood at $422.55 million, also fell by 52%, under the effect of the economic situation resulting from the war in Ukraine and the “zero Covid” policy in China.
This situation has led to both a drop in the price of ore and an increase in the prices of products consumed, spare parts and hydrocarbons, as well as strong tension on sources of supply.
Furthermore, the Board noted with satisfaction the completion, at the start of the year, of the dredging works of the channel of the ore port, the progress of the F’dérick projects and the new ship loading line, as well as the efforts made to relaunch the Al-Aouj and Atomaï partnerships.
With regard to the strategic orientation towards the enhancement of the company’s products, the Board welcomed the signing of the memorandums of understanding in the fields of pelletization and green steel, as well as the study on the delivery of natural gas to Nouadhibou. The Board also welcomed the efforts of the public authorities for the development of new energy sources such as gas and green hydrogen, without which the transformation of the ore cannot be envisaged.
Regarding the mining diversification policy, the Board expressed its interest in the research work for gold and base metals, carried out by the Company in the Wilaya of Inchiri.
Regarding support for human resources, the council confirmed its interest in human capital, and approved a set of incentive measures, aimed at improving the purchasing power and social framework of workers.
The Board also commended the Company’s support to its subcontractors to comply with government decisions to increase minimum wages. It supports the recommendations made to subcontractors to improve the conditions of their workers, in order to support our commitments in terms of social responsibility.
The Board commended the achievements of the SNIM Foundation, in the fields of education, health, basic services and local development, in the wilayas of Tiris Zemmour, Adrar and Dakhlet-Nouadhibou.
He welcomed SNIM’s contribution to the national economy, amounting to 22% of Budget revenue, 9% of GDP and 32% of the country’s exports (these ratios remain provisional pending the publication of final figures by the administrations concerned.)