AMAK expects SAR 3.8 mln additional cost from delayed ops at Al Masane project

Logo of Al Masane Al Kobra Mining Co. (AMAK) 

Al Masane Al Kobra Mining Co. (AMAK) said the expected dates for the start of trial operations and commercial production at Al Masane mine expansion project were changed due to the delay in progress of construction contracting and steel structural works, according to a Tadawul statement.

In July 2023, the company's management reviewed the project schedule with the engineering, procurement, and construction management (EPCM) contractor. Based on the latter's report, the schedule was updated, and the expected dates were changed as of July 23. 

The expected dates for the experimental tests and initial commercial production will be at the end of Q4 2023 and Q1 2024, respectively, the company said.

The additional cost is forecast to reach around SAR 3.75 million ($1 million) due to the increase in the duration of construction works supervision.

AMAK will also impose a delay penalty on contractors upon project delivery, which may reduce the expected financial impact.

The company will announce any significant developments in due course. According to data compiled by Argaam, work began on Al Masane mine expansion project in 2022.

The project aims to increase the production capacity of the subsurface mine by establishing a new processing plant to process Moyeath orebody reservoir with a production capacity of 400,000 tons per year. Therefore, the production capacity of Al Masane mine will reach 1.2 million tons per year.

AMAK’s production capacity of copper and zinc will be increased by 50% and 80%, respectively, in addition to gold and silver.