National Industrialization Co. Announces an update on Delay of operation for Ilmenite Smelter Project for the production of high-grade titanium feedstock
With reference to the announcement published on Tadawul on November 22nd 2020 relating to the Ilmenite Smelter Project for the production of high-grade titanium feedstock (the ‘Plant’), The National Industrialization Company (TASNEE) announces that after decommissioning the furnace and completion of a root cause analysis together with global experts culminating in identifying the root causes for the premature failure of the Furnace, the repair plan was devised and modifications are being implemented by Outotec, the EPC Contractor, with the support of Tronox under the Technical Services Agreement. Outotec will bear the costs of the design modifications. However, due to continuity of Covid-19 pandemic impacts which delayed the completion of the technical design modifications as well as the delivery of supplies manufactured. Accordingly, the plant is expected to start trial operation during the fourth quarter of 2021.
Previous Announcement
Delay of operation for Ilmenite Smelter Project for the production of high-grade titanium feedstock
Date of Previous Announcement on Tadawul's Website
2020-11-22 Corresponding to 1442-04-07
Percentage of fulfilled achievement
98%
Event's Expected Completion Date
Fourth quarter of 2021.
Reasons for Exceeding the Announced End Date
Continuity of Covid-19 pandemic impacts which delayed the completion of the technical design modifications as well as the delivery of supplies manufactured
The costs associated with the event, and if they have changed or not with indication of the reasons.
Outotec will bear the costs of the design modifications.
Impact of the Delay on the Company's Financial Results
The financial impact of this project on TASNEE's consolidated results cannot be determined at this stage. Any further developments will be announced in due course.
Additional Information
Please note that TASNEE owns 50% of this Project and the rest is owned by CRISTAL (which is 79% owned by TASNEE).
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