AMAK forms consortium to bid for ninth mining competition round

Almasane Alkobra Mining Co. (AMAK) signed an agreement with Asas Mining Co. and Arab Mining Co. Fujairah to form a consortium to participate in the Ministry of Industry and Mineral Resources’ ninth mining competition round, according to a statement to Tadawul.

The consortium aims to study, develop, and exploit mineral resources, including copper, zinc, gold, silver, and lead, at the Nuqrah VMS belt site.

A joint venture (JV) will be established if the alliance wins the bid, which will be 60% owned by Asas Mining, while the remaining 40% will be equally divided between AMAK and Arab Mining.

The alliance aims to capitalize on promising opportunities to strengthen its presence in the mining sector, expand its operations in exploration and development, and mine strategic resources with high economic feasibility.

It will further benefit from the technical and technological expertise, financial solvency of the partners, as well as build effective partnerships that contribute to achieving sustainable growth objectives and enhancing long-term shareholder value.

The agreement will remain in effect until the alliance is awarded the mining bid. However, the agreement will automatically terminate if the consortium is not awarded the competition or upon the establishment of a JV company.

Asas Mining is a related party due to direct interests and competing activities involving several board members, namely: Mohammed Aba Al-Ala, owner and board member of Asas Mining, Ibrahim bin Muslim, owner and chairman of

Asas Mining, Majed bin Muslim, owner and board member of Asas Mining.

Arab Mining Co. Fujairah, which is wholly owned by Arab Mining Co. Jordan, is also considered a related party due to indirect interests and competing activities involving several AMAK board members, including Mohammed Al Shehhi, chairman of Arab Mining Fujairah and chairman of Arab Mining Jordan, as well as Fikri Youssef, board member at Arab Mining Jordan.

Related parties were excluded from voting on the recommendation to sign the alliance agreement

The relevant financial impact cannot be determined until the mining bid is awarded and detailed contracts, as well as agreements are finalized.

Jeddah-based Asas Mining was established in 2011 and has several investments in mining and quarrying.

Additionally, Fujairah-headquartered Arab Mining specializes in mining and industrial investments, as well as in studying, developing, and implementing various extractive and industrial mining projects, most notably the basalt fiber and rod production project in the Emirate of Fujairah.

Any material developments in this regard will be revealed in due course, the statement added.