REPUBLIC ISLAMIC OF MAURITANIA
INVESTING IN THE MINING & OIL & GAS SECTORS
I. OVERVIEW
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Mauritania: Overview
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Major deposits: Gold, copper and iron ore and reserves of oil and gas, including
the Chinguetti Oil field. Oil production started in February 2006 and it has proven
reserves of 600 million barrels
Border countries:Algeria and Western Sahara ( to the North), to the East by Mali
and to the South by Senegal. The country is bordered completely by the Atlantic
Ocean.
Land Mass : 1.0307.000 km2 Capital : Nouakchott
Population: 3.359.185 people (2012).The Demographical growth rate is 2.3%
Official Language: Arabic, but French is used as the language of business
Religion : Mauritania is an socially democratic Islamic Republic.
Currency: Ouguiya (UM). Exchange rate (October 2013) 392,83 UM = 1 Euro &
299,24 UM =1 USD$.
Ministry of Petroleum, Energy and Mining
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Mauritania: Overview

GDP Per Person (2012 Esti.): US$ 1 310
900
800
700
600
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Inflation rate: 4% in 2011
500
400
300
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Contribution of the Extractive Industries to
GDP 25% (2011)
200
100
0
2010
2011 (Est.)
2012 (Proj.)
2013(Proj.)
Projection of FDI in $ million (IMF)
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Foreign Direct Investments are growing
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6
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Estimated GDP Growth : 2010-2013 : 6 %
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3
2
1
0
2010
2011 (Est.)
2012 (Proj.)
GDP Growth % (IMF)
Ministry of Petroleum, Energy and Mining
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2013(Proj.)
II.Political Context
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Political Context
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The Government has been democratically elected
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Multiplicity of media and civil society
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Adherence to the EITI member countries ( 2005), country conforming to the
principles of EITI ( 2012)
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Stability of institutions and security
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The Government has made the strategic decision to modernize Mauritania with
the following objectives:
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Promoting good governance
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Enhancing the government performance
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Increasing the efficiency of public policies
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Establishing the foundations of a modern State
Ministry of Petroleum, Energy and Mines
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III. Organisation of the Ministry of Petroleum, Energy & Mines
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The central administration of the Ministry of Petroleum, Energy & Mines includes :
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The Minister’s Cabinet, the General Secretariat and the Central Directions.
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I –The Minister’s Cabinet:: 2 Heads of Mission, 5 Technical Advisors, Internal
Inspector and a Personal Secretariat.
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The following organisations & companies report to the technical and
administrative supervision of the Ministry of Petroleum, Energy & Mines:
National Mauritanian Hydrocarbons Company (SMH) , The National Agency of
Renewable Energy (ANADER) , Mauritanian Gaz Company (SOMAGAZ) Mauritanian
Electricity Company (SOMELEC), Mauritanian Company of Refining Industries
(SOMIR), Mauritanian Office of Geological Research (OMRG), National Industrial and
Mining Company (SNIM), The Committee of the Mauritanian Mining School (CEM) .
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The Ministry monitors the good running of the: Agency for Rural Electrification
(ADER), National Hydrocarbons Commission (CNHY), The Company for the
Management of Petroleum Installations (GIP), Mauritanian Company for the Storage of
Petroleum Products (MEPP), Project to Support Petroleum Management (PAGEP),
Project for the Institutional Reinforcement of the Mining Sector (PRISM),
IV. The reforms
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Mining Sector
The Mining Code
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Mining Code 2008/2009 updated 2012 with the following objectives :
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Provide competitive advantages to the investors in the mining sector
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Establishing the norm « first come first served »
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The Mining Code is completed by a new Standard Mining Convention (2012) which
guarantees the stability of the fiscal system throughout the exploration period
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Exploration Phase :
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License awarded (by Cabinet) of surface of 1.000 km² to a company incorporated in
Mauritania with sufficient technical and financial capacities.
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Guaranty for good execution of the work program and prior payment of fees and rights
($6.000);
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Payment of progressive surface fee year by year from $6,5/km² (first year) to $80/km²
(9thyear)
Ministry of Petroleum, Energy and Mining
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Mining Sector
Mining Code (Continued)
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Exploitation Phase:
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License awarded to a company incorporated in Mauritania for a period of thirty years and
renewable many times for ten years.
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State participation in the capital with a 10% free equity and an option for acquiring a
maximum of 10% cash participation in the exploitation company.
Ministry of Petroleum, Energy and Mining
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Mining Sector
Application
Award
Permit
Application
Fiscal Regime :
Deduction regime according to practice in the mining industry
Competitive rates
Assessment
3 years
Exemption during the first 3 years of production
Exploitation
Tax exemption on dividends that are reinvested
Permit
A simplified tax system for subcontractors working with
1/4
mining operators
Assessment
3 years
1/4
3 years
Assessment
Return of
Permit
EXPLORATION PHASE
Max 9 years
Ministry of Petroleum, Energy and Mining
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Installation Phase 2 years
Production Phase
EXPLOITATION PHASE
30 years
Petroleum Sector
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New legal framework in 2010 updated in 2011
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New Standard Exploration Production Agreement 2011
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Period of exploration: 10 years maximum divided in 3 phases
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Period of operation : 25/30 years, renewable 10 years
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Recovery cost with a rate to be negotiated
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The applied taxation concerns the Industrial and Commercial Profits
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No taxes Import/Export for oil operations
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A simplified tax system adopted for the foreign service providers working with
the oil operators
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10% of State participation free equity starting from exploration managed by
SMH (NOC). Option for acquiring a maximum of 10% cash participation.
Ministry of Petroleeum, Energy and Mining
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Oil Sector
Award
Application
Contract
Standard Production
Exploration Contract
Assessment
Sub phase 1
Geological Studies
Geophysical Studies
Drilling
Sharing Production
based on the R factor
1/4
Sub phase 2
Estimated recoverable reserves
Program and implementation schedule
Estimated investment
Funding arrangements
Enviromental Impact Assessment
Rehabilitation program
Assessment
1/4
Sub phase 3
Assessment
End
Contract
NEGOCIATION
Ministry of Petroleum, Energy and Mining
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Exploitation
Authorization
EXPLORATION PHASE
Max 10 years
Fiel Development
Fiel Operation
EXPLOITATION PHASE
25/ 30 years
Petroleum Sector
Downstream: Hydrocarbons Code
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Legal framework adopted in 2002
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activities of import, export, refining, storage, racking, transportation, distribution
and marketing of refined hydrocarbons
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Activities subject to license
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Revision to enhance the framework and to enable a PPP to rehabilitate, develop
and manage storage capacities
Ministry of Petroleum, Energy and Mining
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Oil and Gas Blocks in Mauritania ( October 2012)
Ministry of Petroleum, Energy and Mining
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V. Development of Key Infrastructure
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Improvement of the Factors of Production Costs
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A major investment program in the infrastructure sector has been developed by the
Government, with the aim of significantly improving the conditions of development in the
Private sector :
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Establishment of a Free Zone in Nouadhibou (starting 2012)
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Iron Ore Port in Nouadhibou, extension of the Commercial Port of Nouadhibou and the
Extension of Port of Nouakchott (2013)
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New International Airport (2014)
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Water supply: Aftout Saheli Project 200 000 m3 per d ay (2010)
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Energy : launch of Gas Power Plant project and extension of the electricity network,
Renewable Energy (15 MW Solar and 30 to 40 MW wind projects)
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Roads : opening up of the valley and the northern area with the construction of secondary
roads,
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Education : Akjoujt Mining School, Mining Technology Training Center Akjoujt, University
Campus ,
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Telecommunications : optical submarine cable ACE (2012)
Ministry of Petroleum, Energy and Mining
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VI.Investments
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VII. Important Assets
An effective Mobilization of Private Operators
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Mining : more than 300 Exploration Licenses and 12 Exploitation Licenses
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Iron Ore : Snim/GuelbII, Xstrata/Askaf, Bumi/Tamagot,
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Gold : Expansion of Tasiast Gold Mine
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Granite : Joint Venture with SNIM
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Quartz : 2 exploitation permits
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Phosphate : Bofal Indo Mining Company
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Oil & Gas : 1 PSC Exploitation Phase Petronas
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Tullow Oil : 1 Onshore bloc et 1 Offshore (deepwater)
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Total E&P: 1 Onshore bloc et 1 Offshore (deepwater)
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Kosmos Energy: 3 Offshore Blocs (deepwater)
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Chariot Oil & Gas: 1 Offshore Bloc
Ministry of Petroleum, Energy and Mining
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VIII. SNIM & TASIAST
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SNIM
The New Vision of SNIM is to guarantee its integration into the Top 5 worldwide
exporters of Iron Ore from now until 2025 with an annual production of 40 million
tonnes and a cost of production that does not exceed $40/T
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SNIM: Exploits essentially two types of iron ore in the region of Tiris Zemmour in the North of
Mauritania: the hematite mineral and the magnetite mineral.
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Hematite: The major deposits of hematite actually in production are T014 ((Kédia) and
M’Haoudatt . They provide 60% of SNIM’s total production.
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Magnetite: The Guelb El Rhein, the only deposit of magnetite in exploitation at this time,
contains several hundred million tonnes of proven reserves. The Guelbs Factory where these
minerals are treated, has an annual capacity of 4.5 million tonnes. All mining operations are
carried out by SNIM themselves, research, pit optimisation, earth moving, ship-loading, rolling,
training, explosives, rail transport, maintenance etc.
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The Guelb II project includes essentially the construction and equipment of a second iron ore
magnetite enriching factory. It mobilises an investment of nearly 750 million USD and covers: the
extension of the existing mine, the construction of an mineral enrichment factory with an annual
capacity of 4MT, the extension of the Central Electric, the extension and modernisation of
installations and existing annexes, putting into exploitation a water capturing field and a network
of water conveyance
Ministry of Petroleum, Energy and Mining
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SNIM
In October 2013, announced the results of their exploration at Tizerghaf,
situated 40 km north of Zouerate, they evaluated probable resources of 830
million tonnes ( inferred) of magnetite iron ore
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The PDM is an ambitious program of which the cost is about 1 billion USD. This program will
focus on.
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The modernisation of SNIM’s existing infrastructure
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The increase by a significant amount of the production capacity of the Company.
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The 8 components of the PDM are:
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Guelbs II Factory, New Mineral Port (NPM), Modernisation and Rail Maintenance (MMV),
Modernisation of the Communication System (MSC), Modifying the Handling of TO14 (MMT),
Modernisation of the Zouerate Electrical Network (MRE), the extension of staff accommodation
and Rehabilitation of hotels, new professional training centre of Zouerate (NCFPZ)
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SNIM is also involved in developing iron ore resources with partners including the following
projects:
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Project El Aouj ( Xstrata), Project Tazadit 1 ( MinMetals), Project Leagarib
Ministry of Petroleum , Energy and Mining
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IX. Tasiast
Kinross acquired with a 100% stake, the gold of mine of Tasiast on 17 September 2010,
after having acquired Red Back Mining Inc. The mining has a very high potential, with a
vast gold system, which is largely unexplored.
Kinross-Tasiast
finalised a framework study for the expansion of the Tasiast mine,
based on the period of 16 years. For the first 8 years of effective exploitation, the average
annual production should reach 1.5 milion ounces of gold, with an average sales prices
from $480 - $520, with a quality estimated at about 2g/t and average rate of recovery at
93%
This
is an open cast mine, producing 8000 tonnes per day with the current factory and
with an output of 60,000 tonnes per day envisaged after the expansion project.
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of June 2011, the proven and probable mineral reserves of the Tasiast mine are
estimated at 7.6 million ounces. The measured mineral resources et indices were 9.1
million ounces, and the mineral resources presumed at 4.6 millions ounces. The Tasiast
Mine will exploit a deposit of 30 tonnes of gold. Tasiast is the first gold producing mine
in the Republic Islamic of Mauritania
Ministry of Petroleum, Energy and Mines
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X. Current Status and Perspectives for the Development of the Mining
Sector
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Geological Coverage : Total coverage of Mauritania: 1/500.000
Coverage of 52% of the Territory to 1/200.000- Format : SHP,PDF
Ministry of Petroleum, Energy and Mining
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►D-Reguibat: Archean and
Birimian
formations:
with
mineralisations of uranium, iron,
gold and copper...)
►C-Mauritanides:
metamorphic,
volcanic
&
sedimentary formations with
copper, gold, iron, beryl,
manganese
and
nickel
mineralisation….)
►B-Coastal:
formations
Paleozoico-Cenozoic formations
with mineralisations of Ilménite,
monazite, zircon, phosphates, salt
…)
►A-Taoudeni: deposits of
Proterozoic
superior
to
Paleozoic, with mineralisations of
copper, gold, zinc, uranium…etc
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Potentialities: Coastal Basin
1.
Titanium/Zirconium: Jreida,Tanit,Lemsid, Cap
Timiris
Peat: 23 known occurrences in the Coastal Basin
with more than 3 million m3 reserves of peat
discovered over an area of 5000km2
Gypsum: One of the largest deposits of gypsum in
the world, situated at Sebkha N'Drhamcha between
50 and 100 km to the North/North-East of
Nouakchott, 9 billion metric tonnes
Phosphates: Resources identified of more than 130
Mt with content 20% P2O5, in the Bofal-Loubeira
Zone, easily exploitable, close to main roads and
with access to the Ocean.
2.
3.
4.
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Potentialities: Mauritanides
1.
Copper: Guelb Mogrein Deposit (IOCG), known since
Neolithic times, mined by First Quantum/MCM, production
(2011) 35,281 tonnes of copper & 62,938 troy ounces of
gold, reserves 32.06 million tonnes 1.09% copper and 0.79
g/t gold.
Iron Ore: Large region favourably for both hematite,
magnetite and the mineralisation of Geothite at Kaouate,
Tamagot, Legleitate and Idjibiten
Gold: several deposits at Fra Agharghar (Vararate), Kadiar,
Mbout and Bouzraibia. The majority of prospective sites are
“Greenfield”
Barite: Barite discovered in several places in the
Mauritanides notably at Bouzraibia
REE (Terres Rares): exist in the region of Bounaga
2.
3.
4.
5.
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Potentialities: Taoudeni Basin
1. Copper: Sedimentary Copper in the Neoproterozoic-Cambrian,
continental
sediments of Taoudeni Basin, notably
found in the Char and Teniagouri groups
2. Or: Aluvial Deposit, “red bed” type
3. Uranium: non compliant uranium,
sandstone type, red-bed type, and
associated with phosphates
4. Lead,Zinc
Potentialities: Tindouf Basin
Iron Ore: Phanerozoic oolitic type
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Potentialities: Reguibat Ridge
1.
Gold: Orogenic and hydro-thermal, deposits of gold and
paleoplacers
Uranium: Large deposits
a) Bir en Nar 1.33Mt @ 704ppm
U3O8
containing
2.06Mlbs U3O8
b) A238
45.2 Mt @ 235 ppm U3O8
containing 23.4 Mlbs U3O8
c) Aura Calcrete 68.7 Mt @ 300 ppm
U3O8
containing t 50.2 Mlbs U3O8
Diamants: Discovery of a kimberlitic dyke at Maqteir (2000),
more40 kimberlites discovered in the country( 2005-11)
Ornamental Stones: Amsaga, Tijirit and Tasiast Terrains
Zednes regions
Nickel, Lithium and Beryl: Occurrences of nickel present in
the Paléoprotérozoic, Beryl is found in Iguilid Lithium found in
several places principally at the Chambi belt green stone, Zone
Nich Sebkhet, the Tijirit belt as well as the North East part of
the Amsaga Complex.
2.
3.
4.
5.
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Honour– Fraternity - Justice
Thank you very much for listening!!
Please come and meet us in the Islamic Republic of
Mauritania!
Ministry of Petroleum, Energy and Mining
Route de la plage rond-point Sabah, Nouakchott Mauritanie, BP : 4921
Tél. 00(222) 45259515 Fax : 00 (222) 45255250 www.mauripem.com
Ministry of Petroleum, Energy and Mining
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