November 27, 2023 (MLN): The Board of Directors (BoD) of Kohinoor Spinning Mills Limited (PSX: KOSM) has agreed to pursue the strategic partnership with The Nation Trust Holdings Abu Dhabi, UAE through its subsidiary EMNOC to establish raw and value-added mineral based business in Pakistan, the company's filing on the PSX showed today.
Accordingly, the board has authorized the company's CEO to execute and implement this project.
The Nation Trust Holdings (NT) is one of the well-known Abu Dhabi, UAE-based group and has entered into a memorandum of understanding (MOU) with KOSM after much research and negotiations by considering the key following facts, as per the company's notice.
Firstly, is one of the biggest raw and value-added mineral suppliers/importers in the UAE who supplies to well known companies in GCC including Emirates Gulf Aluminum and Adnoc.
Secondly, NT has been importing minerals mainly from Africa and other countries but never been from Pakistan.
NT was looking from reliable strategic partner in Pakistan as country has huge reserves of these minerals.
Thirdly, Bauxite (Aluminum Ore) is available in excess quantity in Khushab area and is mainly used by Aluminum refineries in the world to produce Aluminum.
NT & KOSM has done complete ground research and laboratory survey through SGS Pakistan.
Moreover, as KOSM is located in Chakwal on its own 652 Kanal freehold land and is in close proximity to Khushab area, there are millions of tons of Bauxite (Aluminum Ore) reserves available in this area and KOSM has plans to secure lease of some mines for this.
Additionally, KOSM added that KOSM intends to install Ore Benification Plant with the sponsorship of NT in their current facility to process Bauxite in order to improve its purity and it may take only 6-8 months to be ready as NT shall arrange all technical and procurement support in this regard.
Furthermore, NT has plans to invest approximately AED 30 Million UAE Dirham (around Rs2.5 Billion) in this regard and KOSM will be a partner in this project for managing and allocating its facilities in Chakwal and sorting all government approvals.
Detailed financial modeling and financial numbers will be released later, it said.
Apart from Bauxite, Pakistan has reserves for Barite, Calcium Fluoride (fluorspar), Copper, Phosphate, etc and NT has also shown interest in procuring these minerals through KOSM.
Future Outlook of KOSM
The company stated that it is in serious discussions with UAE and Pakistan-based stakeholders to transform the company in mining and mineral technology compan.
Noting that KOSM is strategically located near mineral reservoirs, possesses a vast area of 81.5 acres (652 Kanals) of freehold land, and also installed 2 MW Solar Power plant with the support of Singapore based green technology fund.
Copyright Mettis Link News
Posted on: 2023-11-27T12:12:45+05:00
