The Islamic Corporation for the Development of the Private Sector (ICD), the private sector arm of Jeddah-headquartered Islamic Development Bank Group (IsDB), will arrange a Shariah-compliant syndicated or club financing facility of up to $900 million for Mauritania Saudi Mining and Steel Company (Takamul), the institution said in a press statement.

ICD’s commitment, on a non-binding and best-effort basis, forms part of a three-year memorandum of understanding with the Government of Mauritania covering strategic cooperation in private-sector development and economic capacity building.

ICD said the facility will support the development of the Atomai iron ore project in the Tiris Zemmour mining region, encompassing an open-pit iron ore mine, beneficiation facilities, two pelletising plants in Nouadhibou, and ancillary infrastructure including power generation and water desalination.

The development is expected to produce about 10 million tonnes per year of high-grade direct-reduction (DR) iron ore pellets, which are used in low-carbon steelmaking.

(Writing by P Deol; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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