AMAK-Glencore deal to enable direct sales, boost plant efficiency by 3%: CEO

Yahia AlShangiti, CEO of Al Masane Al Kobra Mining Co. (AMAK)

Yahia AlShangiti, CEO of Al Masane Al Kobra Mining Co. (AMAK), said the sales agreement with Glencore International AG will help the company in direct sales and improve the productivity of its plant.

He told Argaam, during the Future Minerals Forum held in Riyadh, that the agreement includes helping AMAK deal with the plant without any additional fees to improve production and extraction efficiency.

The plant's production efficiency currently reaches 80%. After this agreement, it will rise by 2-3% through the Glencore mines, he added.

Under the two-year contract, AMAK will sell all its products of zinc and copper concentrates produced from mining operations in Saudi Arabia, directly at the market price, according to the executive.

He explained that the company had previously worked with intermediaries to sell products through tenders.

AlShangiti also said that Glencore International is one of the largest players in the sector, adding that it sells copper and gold and is the owner of its mines.

Earlier today, Jan. 12, AMAK announced sealing a new multi-year offtake contract with Glencore International to sell 100% of its zinc and copper concentrates produced from mining operations in Saudi Arabia, according to Argaam's data.