KOSM Inks MoU with UAE Firm For Mineral Business in Pakistan
By: Asia Business Outlook Team | Wednesday, 29 November 2023
A Pakistani yarn maker, Kohinoor Spinning Mills Limited, announced the signing of a memorandum of understanding (MoU) with Nation Trust Holding (TNTH), a UAE-based conglomerate, to build a raw and value-added mineral-based company 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), as per thenews.
The firm's Board of Directors (BoD) opted to explore the strategic relationship with TNTH "through its subsidiary EMNOC to establish a raw and value-added mineral-based business in Pakistan and had authorized its CEO to execute and implement this project," according to the company.
It stated that TNTH had been importing minerals mostly from Africa and other nations, but never from Pakistan, and that the business was searching for a dependable strategic partner in Pakistan due to the country's vast supplies 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.