The main actors of the Mauritanian extractive sector met on May 24 at the invitation of the Minister of Petroleum, Mines and Energy, Abdessalam Mohamed Saleh and under the high patronage of the President of the Republic , for a day of discussions on the energy transition within the mining industry. This very high-level summit crowns the efforts of the Mauritanian government and Kinross Tasiast, which are now working hand in hand to strengthen the attractiveness of the Mauritanian extractive sector.
A booming extractive sector
Bringing together in particular the CEOs of Kinross Gold Corporation, Paul Rollinson, of BP, Gordon Birrell and of Kosmos Energy, Andrew Inglis, as well as the representative of the World Bank in Nouakchott, Cristina Isabel Pana, this very high-level meeting made it possible to forward the great opportunities offered by the Mauritanian extractive industry. As proof, while his presence had not been mentioned by the national authorities, President Ghazouani honored the participants of the panel with his presence, a symbol of the importance given by the Head of State to mining, national and international actors. . Representing 82% of the flow of FDI over the period 2007-2017, the extractive sector remains the engine of the national economy and accounted with the fisheries sector for 98.1% of the country’s total exports in 2019.
In recent years, driven by numerous government efforts and the discovery of large hydrocarbon deposits, new players have established themselves in Mauritania and invested in the oil and gas sector. This is particularly the case of the British companies BP and the American Kosmos Energy, which, following an agreement signed in 2019, will begin operating the Grande Tortue Ahmeyim (GTA) gas field for a production target of 2.5 million tonnes of gas from December 2023.
New players should even enter Mauritania: the National Industrial and Mining Company (SNIM) has signed two memorandums of understanding with the steel group ArcelorMittal and the Anglo-Swiss mining company Glencore. Similarly, two new contracts were ratified with the companies CWP and Chariot for the establishment of a definitive agreement for the development of the green hydrogen projects Aman and Nour.
Tasiast, the original company
This recent “boiling” of the extractive sector was made possible thanks to the multiple efforts made by Tasiast, operated by the TMLSA subsidiary of Kinross, one of the first foreign companies established in the country and a historical player in the private sector in Mauritania. Supporting the government for more than a decade, Tasiast has worked extensively to establish a stable regulatory and economic framework as well as to establish a business climate conducive to the arrival of these new investors. It is indeed thanks to a constant dialogue between this giant of the mining sector and the Mauritanian government that the country has been able to gradually open up to foreign investors. To the delight of new foreign investors entering Mauritania.
The government is also delighted with the example set by Tasiast, which invests in projects for the benefit of local communities and the development of green energies. These investments impose a high standard of sustainability to which new private actors will have to comply, which might make Mauritania one of the pioneers of green energy in West Africa.
In addition, the new agreement signed between Tasiast and the International Finance Corporation (IFC) to strengthen the local content strategy of the mine also represents a major opportunity for the development of the country. From now on, each foreign company will have to attach great importance to local content and employ a minimum of 97% Mauritanian employees. If Tasiast has already complied with this standard, it is now working to reach 98% in 2027.
This high-level panel thus confirms the optimistic forecasts of the Bretton Woods institutions, and, even more, the development of a brand image for the country. Mauritania, since the election of President Mohamed Ould El-Ghazaouani, has therefore fully embarked on a new era, conducive to sustainable foreign investment and concerned with a development model that respects the environment.
