AMAK starts tests at new processing plant, expects to continue in Q1 2024

Almasane Alkobra Mining Co. (AMAK) commenced the operational readiness tests for the new processing plant in December 2023, but does not expect to complete the tests by the end of 2023 as announced earlier. The company said the tests are likely to continue during Q1 2024.

The delay in operational readiness tests is not expected to affect the previously announced time for initial commercial production, scheduled for Q1 2024, AMAK said in a statement to Tadawul.

The current completion rate is 85%, the statement said, attributing the delay to late delivery of fabricated steel from the supplier and late delivery of piping material.

There is no change in costs from previously announced estimates, AMAK said, adding that any further developments will be disclosed.

According to data compiled by Argaam, work began on Al Masane mine expansion project in 2022. The project aims to increase the production capacity of the subsurface mine by establishing a new processing plant to process Moyeath orebody reservoir with a production capacity of 400,000 tons per year. Therefore, the production capacity of Al Masane mine will reach 1.2 million tons per year.

AMAK’s production capacity of copper and zinc will be increased by 50% and 80%, respectively, in addition to gold and silver.

In July, AMAK said experimental tests Al Masane mine expansion project are likely to begin at the end of Q4 2023, while the initial commercial production phase will commence during Q1 2024.