SABIC And QASCO Plan Participation In Mauritanian Iron Ore Project
Saudi Basic Industries Corporation (SABIC) and Qatar Steel Company (QASCO) on 7 March signed a memorandum of understanding (MOU) in Nouakchott with Mauritania’s Société Nationale Industrielle et Minière (SNIM) and Sphere Investments for the joint development of an iron ore pellet production project in the Maghreb state. SNIM and Sphere are partners in the Guelb El-Aouj Direct Reduction Pellet Project, which is designed to produce 7mn tons/year of direct reduction pellets over a 30-year period with output scheduled to begin in 2010. The MOU calls for the project to supply pellets to SABIC’s Saudi Iron and Steel Company (Hadeed) in Jubail and QASCO. The two Gulf industries will finalize their investment upon the results of a satisfactory bankable feasibility study, due by late October 2007. The agreement establishes a new Mauritanian company named Newco that will develop the project – owned by a SNIM/Sphere joint venture (50.1%), SABIC (34.9%) and QASCO (15%). Together, Hadeed and QASCO own 18% of Sphere Investments. A QASCO delegation held talks in Mauritania on possible iron ore cooperation in early 2005 (MEES, 31 January 2005).
