Mauritania+Strategic+Minerals

=China Minmetals Is Likely To Make Significant Investments Into Mauritania's Iron Ore Industry Over The Next Five Years=

Executive Summary:
It is highly likely that China Minmetals will make significant investments into iron ore mining in the next 5 years. In 2011, the Mauritanian government granted an iron mining license to Tazadit Underground Mines Company, a joint venture between China Minmetals Corporation and Societe Nationale Industrielle et Miniere (SNIM). This was the first time a foreign company was granted a mining license. The agreement between China Minmetals and SNIM promises 1.5 million tons of iron ore for export to China each year. Mauritania's mining industry is quickly expanding offering more opportunities for Chinese companies to make profitable investments.

Discussion:
Mauritania contains a variety of strategic minerals including iron ore, copper, diamonds, and gold. Mauritania's iron mining industry currently accounts for up to 12 percent of the country's GNP and around half of the country's exports. Currently, Mauritania is the ninth largest supplier of iron ore to China. In the past few years, the industry has seen a large increase in foreign investment, with investment into both uranium (Australia-based Forte Energy), iron ore (China-based Minmetals and Sweden-based Xstrata), and gold (Canada-based Kinkross).

In 2011, Mauritania granted an iron mining license to Tazadit Underground Mines Company, a joint venture between China Minmetals Corporation (35 percent stake) and the Mauritania-owned SNIM (65 percent stake). This was the first time a foreign company was granted a mining license. The Tazadit 1 iron mine is located near Zouerat in northern Mauritania. The mine is expected to produce 2.5 million tons of iron ore per year with 1.5 million of it being exported to China.

Analytic Confidence:
Analytic confidence is medium. Source reliability ranges from medium to high. There is no conflict between sources. The analyst had low expertise on the subject, did not use a structured analytic method, worked alone, and collaborated with a team. The subject is moderately complex and the deadline was moderately difficult to meet.


 * Analyst****:** Jared DeTal