AMAC announces delay in start of trial operation and commercial production of Al Masane mine expansion project

Almasane Alkobra Mining Company (AMAK) announced on Sunday that the expected dates for the start of commissioning and commercial production of the Al Masane mine expansion project have changed from the dates mentioned in the prospectus and the report of the Board of Directors for the year 2022 due to the following main reasons:

1- Civil works contractors’ progress

2- Structural steel works fabricator progress

The company said today on Tadawul that the additional cost is expected to be around 3.75 million Saudi Riyals (01 million US dollars) due to the increase in the duration of supervision of construction works. The company will also apply a delay penalty to contractors upon project delivery, which may reduce the expected financial impact.

The company will announce any significant developments in this regard.

This comes after referring to Almasane Alkobra Mining Company (AMAK) previous announcement about the development of Al Masane mine expansion project (Moyeath orebody development), and the expected Cold Commissioning date of the new processing plant published on 23/07/2023.

In July 2023, the company’s management reviewed the project schedule with EPCM contractor, and based on the information received from them, the schedule was updated and the updated expected dates were announced on 07/23/2023 AD, as it was explained in the announcement that the expected time for the experimental tests will be at the end of Q4 2023 AD and the expected time for the initial commercial production will be during Q1 2024.