With reference to the announcement published on Tadawul on 28/12/2022 relating to the Ilmenite Smelter Project for the production of high-grade titanium feedstock Metso Outotec (MO) and Advanced Metal Industries Cluster Company Limited (AMIC), a subsidiary of the National Industrialization Company (Tasnee) sign Settlement and Collaborative Refurbishment and Optimization Works Agreements relating to the Ilmenite Smelter Project in Jazan City for Basic and Downstream Industries.
MO and AMIC have signed a Settlement Agreement on 08 March 2023 in relation to the engineering, procurement, and construction contract for the Ilmenite Smelter Project entered into in 2012, as subsequently amended and supplemented. As part of this settlement, MO, AMIC and AMIC's affiliate Advanced Smelting Industries Co. Ltd have entered into a “Collaborative Refurbishment and Optimization Works” Agreement to govern future works on the project.
The Collaborative Refurbishment and Optimization Works Agreement entails additional value engineering and enhancements for both furnaces to ensure sustainable operating performance at higher operating rates. The value engineering shall evaluate and finalize the required enhancements for both furnaces and is expected to be completed during 2023.
The Furnace 1 has been successfully ramping-up its operations since December 2021 and has been producing on-specification marketable high-quality chloride slag and pig iron.
Advanced Metal Industries Cluster (project owner) and Metso Outotec (contractor) companies will bear the costs of the design modifications.
The financial impact of this project on TASNEE's consolidated results cannot be determined at this stage. Any further developments will be announced in due course.
Please note that TASNEE owns 50% of this Project and the rest is owned by CRISTAL (which is 79% owned by Tasnee).