AMAK signs LOI with Esan, Armico-Fujairah for industrial minerals investment

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

Al Masane Al Kobra Mining Co. (AMAK) signed a letter of intent (LOI) with Esan and Arab Mining Company Fujairah (Armico-Fujairah) to establish a closed joint stock company with a SAR 1 million seed capital that can be increased in the future. 

The cooperation aims for investment in industrial minerals and related manufacturing industries across Saudi Arabia, according to a statement to Tadawul. 

AMAK will own 45% of the new company, while Esan and ARMICO-Fujairah will own 45% and 10%, respectively, the statement added. 

The new company will invest in industrial minerals such as quartz, feldspar, silica sand, and clay minerals of various types, AMAK said, adding that the main goal of establishing this joint venture is to diversify its mining activities and related industries, specifically in minerals and industrial rocks throughout the Kingdom. 

Moreover, the step was taken to provide an opportunity to focus on studying, developing, and implementing projects in Saudi Arabia for the exploitation of base metals such as copper, zinc, and nickel, as well as precious metals such as gold and silver. 

The letter of intent is valid until the completion of drafting the conditions agreed upon by the parties, or until Nov. 12, 2024, if no binding agreement is concluded, whichever occurs earlier. 

AMAK highlighted that the letter of intent does not entail any financial or legal obligations for any party towards the other and that any relevant resulting agreements will be formulated later in detailed. 

There are related parties to the deal, namely Mohamed Al-Shehi, AMAK’s board member, as well as the Chairman of Armico-Fujairah, and Savas Sahin, CEO of Esan and AMAK’s board member. 

Based in Istanbul with several branches in China, Italy, and Ukraine, Esan specializes in the exploitation and production of industrial minerals and related manufacturing industries. It also invests in the production and export of industrial minerals, including feldspar, quartz, spherical clay, and kaolin, as well as mineral ores such as lead, zinc, and copper to international markets. 

Headquartered in Fujairah, Armico-Fujairah is wholly owned by Arab Mining Co. (a joint Arab company) specializing in the field of mining and industrial investments, in addition to studying, developing, and implementing a number of extractive and industrial mining projects, most notably the project to produce basalt fibres and bars in the Emirate of Fujairah.