Tasnee’s AMIC signs settlement, collaborative agreements on Ilmenite Smelter Project

Logo of National Industrialization Co. (Tasnee)

National Industrialization Co.’s (Tasnee) subsidiary, Advanced Metal Industries Cluster Co. Ltd. (AMIC), signed on March 8 a settlement and collaborative refurbishment and optimization works agreements with Metso Outotec for the Ilmenite Smelter Project in Jazan City for Primary and Downstream Industries (JCPDI).

The final settlement agreement is in relation to the original engineering, procurement, and construction (EPC) contract, signed in May 2012. The agreement will govern future works on the Ilmenite Smelter Project, Tasnee said in a statement to Tadawul.

The collaborative agreement entails additional value engineering and enhancements for both furnaces to ensure sustainable operating performance at higher operating rates.

The value engineering will evaluate and finalize the required enhancements for both furnaces and is expected to complete during 2023. AMIC, the project owner and MO, the contractor will bear the costs of the design modifications.

The smelter’s furnace-1 has been successfully ramping up its operations since December 2021. It has been producing on-specification marketable high-quality chloride slag and pig iron, the statement added.

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, the company noted. In December 2022, Tasnee announced the successful operation of the furnace-1 at 42 megawatts (MW) compared to the target load of 45 MW (70% of furnace design capacity) as part of the sustainable operations test, Argaam earlier reported.

Tasnee and Cristal own the project 50-50. Tasnee also hold 79% stake in Cristal.