The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of the Islamic Development Bank (IsDB) Group, has signed a three-year cooperation framework with the Islamic Republic of Mauritania that includes arranging up to $900 million in Shariah-compliant financing for the Atomai iron ore project. The deal, signed on March 12, 2026 at ICD headquarters in Jeddah, unlocks one of West Africa's largest mining infrastructure pipelines — and a significant wave of procurement opportunities across construction, energy, water, and logistics.
The Deal: $900 Million for Mining and Infrastructure
The centerpiece of the Memorandum of Understanding is ICD's commitment to arrange a Shariah-compliant syndicated or club financing facility of up to USD 900 million in favor of Mauritania Saudi Mining and Steel S.A. (Takamul). The facility will support the full development of the Atomai iron ore project, located in the Tiris Zemmour mining region of northeastern Mauritania.
Takamul is a 50-50 joint venture established in 2012 between Saudi Basic Industries Corporation (SABIC), one of the world's largest petrochemical companies, and Société Nationale Industrielle et Minière (SNIM), Mauritania's national mining company. The project has been in development for over a decade, and the ICD financing commitment represents a critical step toward construction.
The agreement was signed by H.E. Dr. Abdellah Souleymane Cheikh-Sidia, Mauritania's Minister of Economic Affairs and Cooperation; Dr. Khalid Khalafalla, Acting CEO of ICD; and H.E. Mohamed Lemine Dhehby, Governor of the Central Bank of Mauritania.
"We are honored to formalize this cooperation with the Islamic Republic of Mauritania," said Dr. Khalafalla, highlighting ICD's commitment to "deploying Shariah-compliant finance as a catalyst for sustainable development."
Inside the Atomai Project
The Atomai iron ore deposit sits approximately 30 kilometers west of Zouérat, the mining capital of Tiris Zemmour. Technical studies have confirmed reserves exceeding 500 million tonnes of iron ore, with potential to expand to one billion tonnes. The ore is magnetite with 35-37% iron content.
When fully operational — projected for 2029 — the project will produce 10 million tonnes per year of High-Grade Direct Reduction Pellets (HGDRP), a premium raw material used in steelmaking. This would make Atomai one of the largest iron pellet operations in Africa.
The project's infrastructure footprint is substantial:
- Open-pit iron ore mine with conventional mining techniques, processing 25-28 million tonnes of raw material annually
- Beneficiation facilities at the Atomai site, including dry and wet processing plants
- Two pelletizing plants on the Nouadhibou peninsula, near SNIM's existing port
- Power generation infrastructure to supply both mine and processing facilities
- Water desalination systems for operations in the arid Saharan environment
- Connection to SNIM's 640-kilometer railway linking Zouérat to Nouadhibou port
The finished pellets will be exported via SNIM's port to Hadeed — the Saudi Iron and Steel Company, a SABIC subsidiary — as the anchor customer, with surplus volumes targeted at European, Middle Eastern, and West African steel markets.
Why This Matters for Development
Mauritania's economy is heavily dependent on its extractive sector, which accounts for roughly 76% of total exports and nearly 19% of GDP. Iron ore is the backbone of this sector — SNIM produced a record 14 million tonnes in 2023, making Mauritania the second-largest iron ore producer in Africa after South Africa.
However, GDP growth is forecast to decelerate to 3.7% in 2026 due to declining gold and iron ore output as some mines near the end of their life cycle. The Atomai project represents a strategic response: a new, large-scale operation that could sustain Mauritania's mining output for decades.
The project also aligns with Saudi Arabia's broader industrial strategy. SABIC's steel subsidiary Hadeed needs reliable pellet feedstock to support the Kingdom's manufacturing diversification under Vision 2030. By financing the project through Islamic finance instruments, ICD positions the deal within the IsDB Group's mandate of supporting member countries through Shariah-compliant development finance.
Beyond the mining project itself, the MoU covers broader cooperation areas:
- Sovereign credit rating readiness — supporting Mauritania's preparations to obtain its first sovereign credit rating
- Public-Private Partnership ecosystem development — building the institutional framework for future PPP projects
- SME financing — channeling support through local financial institutions to small and medium enterprises
Procurement Implications
The Atomai project creates a multi-year procurement pipeline spanning several sectors and contract types. With $900 million in financing and a 2029 production target, contractors and suppliers should expect procurement activity to intensify through 2026-2028.
Mining and Construction
The open-pit mine alone will require significant earthworks, drilling, blasting, and hauling equipment. The Front-End Engineering Design (FEED), conducted by Spanish engineering firm IDOM, covers mine pit design, infrastructure layout, and ancillary services. Major works contracts will be needed for:
- Mine site preparation and pit development
- Beneficiation plant construction at the Atomai site
- Pelletizing plant construction in Nouadhibou
- Access roads, camp facilities, and worker housing
- Railway connection upgrades
Energy and Water Infrastructure
Power generation and water desalination are critical components in the Saharan environment. Mauritania has been developing its national electrical grid and has significant solar and wind energy potential — contractors specializing in energy and environment should monitor opportunities for:
- Power plant design, supply, and installation
- Solar or wind hybrid energy systems
- Desalination plant engineering, procurement, and construction (EPC)
- Water distribution and storage systems
Equipment and Supplies
The project will need large volumes of mining equipment, processing machinery, and industrial supplies. Supplies contracts will cover:
- Mining trucks, excavators, and drilling rigs
- Beneficiation and pelletizing plant equipment
- Conveyor systems, crushers, and grinding mills
- Laboratory and quality control instruments
- Safety and environmental monitoring equipment
Consulting and Engineering Services
The FEED phase opens doors for consulting contracts in:
- Environmental and social impact assessments
- Geotechnical and hydrogeological studies
- Project management and construction supervision
- Logistics and supply chain planning
- Financial advisory and Shariah compliance structuring
Logistics and Transport
SNIM's existing 640-kilometer railway and port infrastructure provide the transport backbone, but upgrades and capacity expansions will likely be needed to handle an additional 10 million tonnes annually. Transport and logistics firms should watch for contracts related to:
- Railway capacity enhancements
- Port terminal modifications at Nouadhibou
- Marine vessel chartering for pellet exports
Countries and Regions Affected
Mauritania is the primary beneficiary, with the Atomai project positioned to transform the country's mining sector and extend the life of its iron ore industry by decades.
Saudi Arabia benefits as the anchor market for pellet exports. Hadeed's steel operations depend on reliable feedstock, and the Atomai project secures a long-term supply line aligned with Vision 2030's industrial targets.
The broader West African mining corridor stands to benefit from the precedent set by this deal. Countries like Senegal, Mali, and Guinea — all with significant mineral deposits — may look to replicate the ICD's Shariah-compliant financing model for their own mining projects.
The IsDB Group's member countries across the Middle East, North Africa, and Sub-Saharan Africa may also see increased ICD activity in the extractive sector, particularly as the MoU establishes a template for sovereign-level cooperation on mining and PPP development.
What This Means for Contractors
Companies looking to participate in the Atomai project should begin positioning now:
- Register with ICD and IsDB procurement systems — the IsDB's procurement portal lists active and upcoming opportunities across member countries
- Monitor Mauritanian government procurement — national procurement portals will publish tenders as the project moves from FEED to construction
- Understand Shariah-compliant financing — contracts may include Islamic finance provisions (murabaha, istisna'a) that differ from conventional procurement structures
- Build local partnerships — Mauritania requires local content participation, and partnerships with SNIM-affiliated suppliers can strengthen bids
- Track SABIC and Hadeed supply chains — the Saudi anchor customer relationship means some procurement may flow through SABIC's own vendor networks
Firms with experience in mining EPC, power generation, water desalination, or logistics in arid environments are particularly well-positioned for this pipeline.
Looking Ahead
The ICD financing commitment is on a "non-binding, best-effort basis," meaning the $900 million syndication process is still ahead. ICD will need to assemble a consortium of Shariah-compliant lenders — a process that could take 12-18 months. If successful, construction contracts could begin flowing as early as late 2027, with the project targeting first production in 2029.
Meanwhile, the broader MoU signals expanding ICD engagement in Mauritania beyond mining. The sovereign credit rating preparation and PPP framework development could open entirely new sectors — energy, transport, telecommunications — to international procurement.
For contractors and suppliers tracking opportunities in African mining and Islamic development finance, the Atomai project is one to watch closely. Browse mining and infrastructure tenders in Mauritania and IsDB-funded opportunities on BidsFactory to stay ahead of the procurement pipeline.