Kohinoor Spinning Mills Limited (KOSM), a textile company listed on the Pakistan Stock Exchange, has announced its intention to enter the mineral business in Pakistan with the support of a UAE-based firm, The Nation Trust Holdings (NT).
According to a notice issued to PSX by KOSM on Monday, the company has signed a memorandum of understanding (MOU) with NT, which is one of the largest suppliers and importers of raw and value-added minerals in the UAE. The partnership aims to establish a mineral processing plant in KOSM’s facility in Chakwal, Punjab, to produce and export high-quality bauxite, which is the ore of aluminum.
Bauxite is abundant in the Khushab area of Punjab, and KOSM plans to secure the lease of some mines for this project. The company claims that it has conducted a complete ground research and laboratory survey of the bauxite reserves through SGS Pakistan, a leading inspection and testing company.
NT, through its subsidiary EMNOC, will invest approximately AED 30 million (around Rs 2.5 billion) in the project and will provide all the technical and procurement support.
KOSM will be a partner in the project and will manage its facilities and government approvals. The company expects the project to be ready in 6-8 months.
KOSM also stated that it is in serious discussions with UAE and Pakistan-based stakeholders to transform the company into a mining and mineral technology company.
The company has a strategic location near mineral reservoirs, a vast area of freehold land, and a 2 MW solar power plant with the support of a Singapore-based green technology fund.
The company’s announcement has generated interest and curiosity among the investors and the public, as it marks a major shift in its business direction. KOSM hopes that the project will create value for its shareholders and contribute to the economic development of Pakistan.