KOSM signs MoU with UAE firm to set up mineral business in Pakistan

KARACHI: Kohinoor Spinning Mills Limited, a Pakistani yarn manufacturer, said on Monday it had signed a memorandum of understanding (MoU) with Nation Trust Holding (TNTH), a UAE-based conglomerate, to establish a raw and value-added mineral-based business in Pakistan.

The MoU was signed through TNTH’s subsidiary EMNOC, which is one of the biggest raw and value-added mineral suppliers/importers in the UAE, KOSM said in a notice to the Pakistan Stock Exchange (PSX).

The company said its Board of Directors (BoD) had agreed to pursue the strategic partnership with TNTH “through its subsidiary EMNOC to establish a raw and value-added mineral-based business in Pakistan and had authorised its CEO to execute and implement this project”.

It said TNTH had been importing minerals mainly from Africa and other countries, but never from Pakistan and the company was looking for a reliable strategic partner in Pakistan as the country had huge reserves of these minerals.

“Bauxite (aluminium ore) is available in excess quantity in the Khushab area and is mainly used by aluminium refineries in the world to produce aluminium.” KOSM, which is located in Chakwal, said it was in close proximity to the Khushab area.

“There are millions of tons of bauxite (aluminium ore) reserves available in this area and KOSM has plans to secure a lease of some mines for this.” The company said for value-added minerals, it intended to install an ore beneficiation plant with the sponsorship of TNTH in its current facility to process bauxite.

“It may take only 6-8 months to be ready as TNTH shall arrange all technical and procurement support in this regard.” KOSM said TNTH had plans to invest approximately AED30 million (around Rs2.5 billion or $8.2 million) in this regard.

“KOSM will be a partner in this project for managing and allocating its facilities in Chakwal and sorting out all government approvals.” KOSM said apart from bauxite, TNTH had also shown interest in procuring other minerals including barite, calcium fluoride (fluorspar), copper, and phosphate from Pakistan.

“We are in serious discussions with UAE and Pakistan-based stakeholders to transform the company into a mining and mineral technology company as KOSM is strategically located near mineral reservoirs, possesses a vast area of 81.5 acres (652 Kanals) of freehold land and also installed a 2 MW solar power plant with the support of a Singapore-based green technology fund.”