National Trust (NT), the largest supplier and importer of raw and value-added minerals in the United Arab Emirates, has signed a memorandum of understanding (MoU) with a Pakistani firm to establish a strategic partnership. The partnership aims to invest 30 million UAE Dirhams in the mining, acquiring, and processing bauxite (aluminium ore) in Punjab.
This collaboration will potentially open up opportunities for exporting processed aluminium ore to the Middle East, thereby boosting bilateral trade and stimulating economic growth in the region.
On November 27, the declaration was made by Kohinoor Spinning Mills Limited (KSML), keeping the Pakistan Stock Exchange (PSX) as an audience. The statement released said: "We are in serious discussions with UAE and Pakistan-based stakeholders to transform the (textile) company into a mining and mineral technology company as KOMS is strategically located near mineral reservoirs and possesses a vast area of 81.5 acres (652 Kanals) of freehold land."
NT has expressed its intention to invest approximately 30 million UAE Dirhams (around Rs2.5 billion) in Pakistan to establish a raw and value-added mineral-based business. As part of this initiative, KOSM will be installing an Ore Beneficiation Plant with the support of NT in their current facility to process bauxite (aluminium ore) and enhance its purity.
The project is expected to be completed within six to eight months, with NT providing all necessary technical and procurement assistance. KOMS will be a partner in this project, managing and allocating its facilities in Chakwal and ensuring all necessary government approvals are obtained.
A notification by KOMS read: "The board of directors has agreed to pursue the strategic partnership with The National Trust Holdings, Abu Dhabi, UAE through its subsidiary EMNOC... has authorised its CEO to execute and implement this project."
Pakistan's Khushab area has an abundant source of bauxite (aluminium ore), which is mainly exported to alumina refineries that produce primary aluminium by treating it. "NT and KOMS have done complete ground research and laboratory surveys through SGS Pakistan," the company asserted.
Pakistan's terrain has been blessed with a diverse range of minerals, such as bauxite, barite, calcium fluoride, copper, and phosphate, alongside other critical minerals. NT is keen on procuring these minerals through KOMS and has expressed interest in securing leases for mines in the Khushab area, where there are widespread bauxite reserves.
As one of the UAE's largest mineral suppliers and importers, NT has been importing minerals mainly from Africa and other countries, but it has never sourced them from Pakistan before. However, with the discovery of vast mineral reserves in Pakistan, NT is confident about exploring the country's potential.
Moreover, KOMS has already established a 2MW solar power plant with the support of a Singapore-based green technology fund, highlighting its commitment to sustainable practices.
If the world of mining and mineral reserves piques your interest, please have a look at AL Circle's specially formulated report on the same, Global Bauxite Industry Insights.
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