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Raw materials

We finance mining projects to extract important raw materials such as copper and iron ore for German and European manufacturing.


Financing case SNIM: Iron ore from Mauretania for the German steel industry

The financing of an iron ore project in Mauretania is an example for the support of German exports and imports which also represents an important contribution to securing the supply of Germany’s raw materials. As the largest commercial sole lender, KfW IPEX-Bank is financing the modernisation initiatives of SNIM (Société Nationale Industrielle et Minière), which is majority-owned by the Government of Mauretania.

Founded in 1974 to extract and sell iron ore, SNIM is the largest company in the northwestern African country. Producing 12 million tonnes of iron ore annually makes SNIM a key strategic supplier to the European steel industry. The planned modernisation efforts will aid SNIM to expand its production capacity to 16 million tonnes annually.


Complex financing structure

The company is investing a total of one billion US dollars in the project, which is a high priority for Mauretania. It marks the largest investment in the history of the country. The object of borrowing includes German goods (conveying technology and ship loaders, dry preparation equipment and mining equipment) as well as iron ore imports for the German steel industry. The financing arrangement has a complex structure involving four commercial banks and four development banks.


SNIM financing at a glance:

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Project profile
  • Investment volume: USD 920 million
  • Debt financing: USD 700 million
KfW IPEX-Bank's contribution
  • Financing amount: EUR 57 million
  • Untied Loan Guarantee Agent – first cover of this type in mining following the untied loan guarantee reform of 2009 (federal guarantees for projects aimed at raw materials security have been expanded to include the hedging of economic risks).
  • German CIRR financing for export portion
  • Role in bank consortium as coordinator for environmental and social issues associated with the harbour sub-project