Abu Dhabi-based The Nation Trust Holdings is set to make a substantial investment of around AED 30 million in Pakistan, establishing a strategic partnership with Kohinoor Spinning Mills Limited (PSX: KOSM). The collaboration, facilitated through The Nation Trust Holdings’ subsidiary EMNOC, aims to create a raw and value-added mineral-based business in Pakistan.
Kohinoor Spinning Mills informed the Pakistan Stock Exchange (PSX) that its Board of Directors has greenlit the pursuit of this strategic partnership with The Nation Trust Holdings. The partnership is geared towards establishing a robust presence in the raw and value-added mineral sector in Pakistan. The Board has authorized the CEO to execute and implement this transformative project.
According to the statement released by Kohinoor Spinning Mills, The Nation Trust Holdings is a well-established group based in Abu Dhabi and has entered into a memorandum of understanding (MoU) with KOSM after thorough research and negotiations. NT is recognized as a major raw and value-added mineral supplier/importer in the UAE, catering to well-known companies in the Gulf Cooperation Council (GCC), including Emirates Gulf Aluminum and Adnoc.
While NT has been importing minerals primarily from Africa and other countries, it had not sourced minerals from Pakistan. Recognizing the significant mineral reserves in Pakistan, especially in the Khushab area abundant with Bauxite (Aluminum Ore), NT sought a reliable strategic partner in the country.
Bauxite, a key material for aluminum production, is available in substantial quantities in Khushab. KOSM, located in Chakwal on its own 652 kanal freehold land, is in close proximity to this resource-rich area. The collaboration involves comprehensive ground research and laboratory surveys conducted through SGS Pakistan.
In addition to the plans for securing the lease of mines for Bauxite, KOSM intends to install an Ore Beneficiation Plant, sponsored by NT, to process Bauxite and enhance its purity. This facility is expected to be operational within 6-8 months, with NT providing technical and procurement support.
The investment commitment from NT stands at approximately AED 30 million (about Rs. 2.5 billion), with KOSM serving as a key partner in the project. KOSM will manage and allocate its facilities in Chakwal, ensuring compliance with all government approvals. Detailed financial modeling and figures will be disclosed at a later stage.
Beyond Bauxite, Pakistan boasts reserves of Barite, Calcium Fluoride (fluorspar), Copper, Phosphate, among other minerals. NT has expressed interest in procuring these minerals through its partnership with KOSM.
KOSM highlighted its serious discussions with stakeholders in the UAE and Pakistan to position the company as a mining and mineral technology entity. With strategic proximity to mineral reservoirs, substantial land holdings, and a 2 MW Solar Power plant, supported by a Singapore-based green technology fund, KOSM is poised for transformation in the mining sector.
