Islamic Republic of Mauritania
| Loan No: | 641 | Interest Rate: | 2.0 % |
| Beneficiary: | Société Nationale Industrielle et Minière (SNIM) | Grace Period: | 6 years |
| Project Cost: | KD 35.5 million | Maturity: | 30 years |
| Amount of Loan: | KD 32.0 million | Repayment: | 49 semi-annual installments |
| Date of Board Approval: | 2017-04-18 | First Installment: | 6 years following the first disbursement |
| Date of Loan Agreement: | 2017-04-18 | Date of Loan Effectiveness: | - |
Objectives:
The project aims at extending the operating life of the Guelb (1) plant and improving the ability of the SNIM company to compete in international markets, through the replacement of the aging equipment used for crushing and grinding iron ore with newer, more efficient and less polluting equipment. This will lead to an improvement in the reliability of the plant and a reduction in its production cost.
Description:
The project, which is expected to be completed during the second quarter of 2020, includes the supply and installation of equipment used for crushing and grinding iron ore, conveyor belts and mechanical cranes necessary to move the iron ore between the various treatment stages, the construction of an electrical substation and the laying of electrical cables to feed the new equipment. The project also includes the supply of a plant control system, and all required civil works and structures, along with the consultancy services necessary for the preparation of detailed designs of equipment and technical supervision. The project consists of the following main components:
- Rehabilitation of the Plant:This comprises the supply and installation of equipment for secondary crushing of iron ore, along with all its ancillary equipment, including that used for the extraction and treatment of dust, the supply and installation of conveyor belts and associated pipes, the construction of a new 11 kV substation, the laying of electrical cables to supply the new equipment with electricity, the design, supply and operation of a plant control system, along with all necessary civil works and structures to house the new equipment.
- Rehabilitation of Diesel Generating Units:This includes the rehabilitation of two diesel generating units located in the Guelb power plant.
- Studies:This includes the preparation of detailed designs for the equipment that will be supplied, and the development of a procedure for replacing the old equipment with a new one, while keeping disruption of production to a minimum.
- Technical Supervision:This includes technical supervision of the works included in the project, and participation in witness testing for the equipment and the control system.
Financing:
The Arab Fund’s loan covers about 90% of the total project cost. SNIM will cover the remaining cost of the project and any additional cost that may arise.