Tasnee announces an update on Ilmenite Smelter Project for the production of high-grade titanium feedstock

With reference to the announcements published on Tadawul dated 28/12/2022 and 09/03/2023 relating to the Ilmenite Smelter Project (“the Slagger”) for the production of high-grade titanium feedstock, Advanced Smelting Industries Company Limited (“ASIC”), a wholly owned subsidiary of Advanced Metal Industries Cluster Company Limited («AMIC») has substantially completed the value engineering phase for the refurbishment, design changes and other operational enhancements and optimization works required to achieve sustainable operating performance at higher operating rates for both furnaces.

ASIC will continue working with the contractor Metso Outotec («Metso») for the enhancement and optimization of Furnace 1 and refurbishment and design changes of Furnace 2, as identified during the value engineering phase. The Company expects to complete the required enhancement and optimization and modifications during second half of 2026 as this industry takes a long time to reach the sustainability of operations and production.

The Slagger plant in Jazan consisting of two furnaces, is the first ilmenite smelting plant being built with this large capacity using Brush Arc AC technology from Metso. The Furnace 1 has been ramping-up its operations since December 2021 achieving the load of 44MW compared to the design load of 64MW and has been producing on-specification marketable high-quality chloride slag and pig iron.

ASIC and Metso will bear the costs to be incurred on enhancement and optimization of Furnace 1 and refurbishment and design changes of Furnace 2 from their own resources and fundings from banks. 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.

It is worthy to be mentioned that the purchase and sale options under the Option Agreement signed between AMIC and Tronox Holdings Plc (“Tronox”) related to the acquisition of Slagger by Tronox have expired without being exercised by either party.