- Nation Trust Holding (TNTH) plans to invest AED30mn, says KOSM in PSX notice
Nation Trust Holding (TNTH), one of the largest conglomerates based in the UAE, has entered into a Memorandum of Understanding (MoU) with Kohinoor Spinning Mills Limited (KOSM) to establish a raw and value-added mineral-based business in Pakistan.
KOSM, a Pakistani yarn manufacturer, in its notice to the Pakistan Stock Exchange (PSX) on Monday said its Board of Directors (BoD) has agreed to pursue the strategic partnership with TNTH “through its subsidiary EMNOC to establish raw and value-added mineral based business in Pakistan and has authorised its CEO to execute and implement this project”.
Sharing the details of the said project, KOSM said that TNTH, a well-known Abu Dhabi-based group, is one of the biggest raw and value-added mineral suppliers/importers in the UAE, which supplies to companies in GCC including Emirates Gulf Aluminum and Adnoc.
“TNTH has been importing minerals mainly from Africa and other countries, but never been from Pakistan,” read the notice, adding that TNTH was looking for a reliable strategic partner in Pakistan as the country has 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,” read the statement.
KOSM, which is located in Chakwal, said that it remains 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,” it said.
The company added that for value-added minerals, it intends 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,” it said.
KOSM informed that TNTH has plans to invest approximately AED 30 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 all government approvals,” read the notice.
KOSM shared that apart from bauxite, TNTH has 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 2 MW solar power plant with the support of Singapore based green technology fund,” KOSM added.