The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank (IsDB), has been commissioned to arrange Sharia-compliant financing of up to $900 million for the Atomai iron ore project, developed by the Mauritania Saudi Mining and Steel Company (Takamul).
This financing, structured as a syndicated loan or a club deal, is arranged on a non-binding, ‘best-effort’ basis. It forms part of a three-year memorandum of understanding signed between the ICD and the Mauritanian government, aimed at strengthening cooperation in the areas of private sector development and the enhancement of the country’s economic capacity.
The Atomai project, located in the Tiris Zemmour mining region, comprises an open-cast iron ore mine, processing facilities, two pelletising plants in Nouadhibou, and the essential supporting infrastructure: power generation and seawater desalination. Once fully operational, the complex will produce around 10 million tonnes per year of high-quality direct-reduction (DR) iron ore pellets, a strategic product for the low-carbon steel industry.
This project represents a major milestone for Mauritania, which aims to develop its vast iron ore reserves by integrating the local value chain and meeting the growing global demand for green steel materials. The arrangement of this Islamic financing by the ICD demonstrates the institution’s ongoing commitment to supporting major infrastructure and natural resource projects in Africa, whilst adhering to the principles of Islamic finance.
No specific timetable or total cost of the project has been announced at this stage. The ICD’s mandate nevertheless marks the official launch of the fundraising phase for this strategic development.