Tasnee expects to restart ilmenite smelter in H2 2020

National Industrialization Co. (Tasnee) announced that its ilmenite smelter project is expected to resume operations in the second half of 2020, as the completion ratio hits 20%.

The company, in collaboration with global experts, identified the reasons for the furnace shutdown and the termination of the cooling period that lasted for nearly a month, according to a bourse filing on Wednesday.

The Saudi-based company agreed with Outotec, the EPC contractor with the support of Tronox under the technical services agreement, to repair the project.

The statement added that Outotec will bear the costs of the redesign modifications.

After the commercial operation of furnace 1, Advanced Metal Industries Cluster Co., a subsidiary of Tasnee, will prepare for commencing operations of furnace 2.

Tasnee cannot currently determine the financial impact of the project and further details will be announced in due course, the statement added.

In October 2018, Tasnee announced turning off the furnace on the back of a technical glitch, with expectations to be operated in H2 2019, Argaam earlier reported.

The project, located in Jazan Economic City, aims at producing (Titanium Slag) with an initial capacity of 500,000 tons a year, and could reach 1 million tons, in addition to its production of pig iron as a by-product sold to iron producers.

It is worth mentioning that Tasnee owns only 50% of the project, while the remaining stake is owned by Cristal, which is 79% oƒwned by Tasnee.