UAE Conglomerate, Nation Trust Holding, and Kohinoor Spinning Mills Forge Strategic Partnership for Mineral-Based Venture in Pakistan

Nation Trust Holding (TNTH), a prominent conglomerate based in the UAE, has formalized a Memorandum of Understanding (MoU) with Kohinoor Spinning Mills Limited (KOSM), a leading Pakistani yarn manufacturer. The agreement aims to establish a comprehensive raw and value-added mineral-based business in Pakistan.

In a notice to the Pakistan Stock Exchange (PSX) on Monday, KOSM revealed that its Board of Directors has greenlit the strategic collaboration with TNTH. This partnership, facilitated through TNTH's subsidiary EMNOC, is set to create a significant impact in the realm of raw and value-added mineral operations within Pakistan.

Highlighting the specifics of the project, KOSM detailed that TNTH, an Abu Dhabi-based giant, is renowned as one of the largest suppliers/importers of raw and value-added minerals in the UAE. TNTH's clientele includes prominent companies in the GCC region, such as Emirates Gulf Aluminum and Adnoc.

The notice emphasized that while TNTH has historically sourced minerals primarily from Africa and other nations, this venture marks its first foray into acquiring minerals from Pakistan. The move is motivated by Pakistan's substantial mineral reserves, particularly an excess quantity of Bauxite (aluminium ore) in the Khushab area, which is crucial for aluminum production worldwide.

KOSM, strategically located in Chakwal near the Khushab area, highlighted plans to secure mining leases for the abundant Bauxite reserves. Additionally, the company intends to set up an ore beneficiation plant in collaboration with TNTH to process Bauxite for value-added minerals. This ambitious initiative is expected to be operational within 6-8 months, with TNTH providing technical and procurement support.

The investment commitment from TNTH stands at approximately AED 30 million (around Rs2.5 billion or $8.2 million). KOSM will actively contribute to the project by managing its facilities in Chakwal and navigating through the necessary government approvals.

In a broader context, KOSM disclosed that TNTH has expressed interest in procuring various minerals from Pakistan, including barite, calcium fluoride (fluorspar), copper, and phosphate. Serious discussions with stakeholders in the UAE and Pakistan are underway to transform KOSM into a mining and mineral technology company. The company's strategic location, expansive land holdings (81.5 acres or 652 Kanals), and a 2 MW solar power plant, established with support from a Singapore-based green technology fund, position KOSM favorably for this transformative venture.