OREANDA-NEWS. SABIC is conducting a feasibility study and is carrying out iron ore exploration at the Atomai Mines in Zouerate, northern Mauritania, under joint venture agreements with the Mauritanian company, National Company for Industry and Mining.

Announcing this strategic move at the Mauritania Investment Forum in Nouakchott, Mauritania on January 26, Abdulaziz Al-Humaid, SABIC Executive Vice President, Metals Strategic Business Unit, said that excavation work as part of the agreements began last September and is expected to continue for three years.

Under the agreements a new company, Mauritania Saudi Mining and Steel Company (TAKAMUL) has been established. Besides carrying out the exploration work and conducting the feasibility study, TAKAMUL will also work towards obtaining the required mining licenses.

SABIC has made this strategic move to strengthen its position as the largest steel manufacturer in the Middle East and to secure cost-effective and quality raw materials.

SABIC will make a decision on whether to continue investing in the project after the outcome of the exploration and feasibility study. The ultimate aim of the project is to produce raw material for the company's plants in the Kingdom and export any surplus to targeted markets.

Initial estimates indicate that the Atomai Mines have a reserve of 500 million tons of iron ore. The technical study could possibly reveal even higher reserves of up to a billion tons. Atomai Mines are known for their high content of high quality iron, among the best in the world, with a low cost of extraction.

SABIC's decision on investing in the Atomai Mines project is the result of a technical and economic study conducted by a specialized SABIC team, which had also studied various other investment opportunities.

The project is the first investment by SABIC in any Arab and African country, demonstrating the company's strategy of expanding its operations and geographical reach in competitive and promising markets.