Global steel giant ArcelorMittal has signed a non-binding Memorandum of Understanding with SNIM, an iron ore mining company based in Mauritania, to evaluate the opportunity to jointly develop a pelletization plant and a DRI production plant in Mauritania. A pre-feasibility study will now be carried over the next four to six months to give better insight into the viability of the potential project which would take advantage of Mauritania’s potential for renewable electricity generation and green hydrogen production. DRI produced using green hydrogen will be a vital metallic for transitioning the steel industry to net zero. The metal produced from green hydrogen will represent an important step in the transition of the steel industry towards zero carbon and will contribute to the economic development of the Region.SNIM is the second largest African producer of iron ore and a major player in the country's economy. The company operated a mining center at the northern town of Zouerate, three open pit iron ore mines at Guelb el Rhein, Kedia d’Idjill, and M’Haoudat in northern Mauritania, port facilities at Nouadhibou on the Atlantic coast, and a railway that linked the mining center to the port facilities.