The main stakeholders of the Mauritanian extractive sector worked, on May 24, 2022 in Nouakchott, on the energy transition in the mining industry.
The exchanges between the stakeholders of the mining sector took place 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.
This high-level summit crowns the efforts of the Mauritanian government and Kinross Tasiast, who are now working hand in hand to strengthen the attractiveness of the Mauritanian extractive sector.
For a transition to green energy and a management of available resources in the face of the global situation in the energy field, the Minister of Petroleum, Mines and Energy, has seen fit to initiate this reflection on the current challenges.
A sector in turmoil
The panel brought together the CEOs of Kinross Gold Corporation, Paul Rollinson, BP, Gordon Birrell and Kosmos Energy, Andrew Inglis, as well as the World Bank representative in Nouakchott, Cristina Isabel Pana.
This high-level meeting highlighted the great opportunities offered by the Mauritanian extractive industry. As proof, although his presence had not been mentioned by the national authorities, President Ghazouani honoured the panel participants with his presence, a symbol of the importance given by the Head of State to the mining industry.
Representing 82% of the flow of Foreign Direct Investment (FDI) over the period 2007-2017, the extractive sector remains the engine of the national economy and, together with the fisheries sector, accounted for 98.1% of the country’s total exports in 2019.
In recent years, spurred by the government’s numerous efforts and the discovery of major hydrocarbon deposits, new operators have established themselves in Mauritania and invested in the oil and gas sector.
This is notably the case of the British company BP and the American company Kosmos Energy, which, after an agreement signed in 2019, will begin exploiting the Grande Tortue Ahmeyim (GTA) gas field with a production target of 2.5 million tonnes of gas from December 2023.
New operators 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 CWP and Chariot for the establishment of a final agreement for the development of the Aman and Nour green hydrogen projects.
Tasiast, the original company
This recent “boiling over” of the extractive sector has been made possible by the multiple efforts of Tasiast, operated by Kinross’ subsidiary TMLSA, one of the first foreign companies established in the country and a historical actor of the private sector in Mauritania.
Supporting the government for more than a decade, Tasiast has worked hard to establish a stable regulatory and economic framework as well as a business climate conducive to the arrival of these new investors.
It is thanks to constant dialogue between this mining giant and the Mauritanian government that the country has gradually opened up to foreign investors. To the great delight of the new foreign investors who are entering Mauritania.
The government has welcomed Tasiast’s investments in projects that benefit local communities and the development of green energy. These investments impose a high standard of sustainability to which the new private players will have to conform, which could 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 mine’s local content strategy also represents a major opportunity for the country’s development.
From now on, every foreign company will have to give a high importance to local content and employ a minimum of 97% Mauritanian employees. While Tasiast has already met this standard, it is now working towards achieving 98% by 2027.
Since the election of President Mohamed Ould El-Ghazouani, Mauritania has fully embarked on a new era, conducive to sustainable foreign investment and concerned with an environmentally friendly development model.
AP/ls/te/abj/APA