Kohinoor Spinning and UAE-based company signs $8.2M Mineral Venture in Pakistan
The UAE-based conglomerate Nation Trust Holding (TNTH) has formalized an MoU with Kohinoor Spinning Mills Limited (KOSM) to establish a raw and value-added mineral venture in Pakistan with a planned investment of $8.2 million.
KOSM will be a collaborative partner, managing its facilities in Chakwal and handling government approvals, the company’s filing to the Pakistan Stock Exchange (PSX) said Monday.
KOSM, which is a yarn manufacturer, reported that its Board of Directors (BoD) has greenlit the pursuit of a strategic partnership with TNTH. This collaboration for the mineral venture will be facilitated through its subsidiary EMNOC, aiming to establish a raw and value-added mineral-based business in Pakistan. The CEO of KOSM has been authorized to execute and implement this project.
TNTH, a well-known group based in Abu Dhabi, is among the largest raw and value-added mineral suppliers/importers in the UAE. It caters to companies in the GCC region, including Emirates Gulf Aluminum and Adnoc, the notice said.
The filing revealed that TNTH has traditionally imported minerals primarily from Africa and other countries but has not sourced from Pakistan. TNTH expressed interest in a reliable strategic partnership in Pakistan, given the country’s substantial reserves of these minerals.
The statement highlighted the abundance of bauxite (aluminum ore) in the Khushab area, a crucial raw material for aluminum refineries worldwide. KOSM, located in Chakwal, emphasized its proximity to the Khushab area and plans to secure mine leases for bauxite extraction.
For value-added minerals, KOSM intends to install an ore beneficiation plant with TNTH’s sponsorship in its existing facility to process bauxite. The company estimated a timeline of 6-8 months for readiness, with TNTH providing technical and procurement support.
In addition to bauxite, TNTH has expressed interest in procuring other minerals such as barite, calcium fluoride (fluorspar), copper, and phosphate from Pakistan. KOSM is actively engaged in discussions with stakeholders in the UAE and Pakistan to transform the company into a mining and mineral technology entity.
KOSM highlighted its strategic location near mineral reservoirs, possession of 81.5 acres (652 Kanals) of freehold land, and the installation of a 2 MW solar power plant with the support of a Singapore-based green technology fund.
