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 05/12/2021 relating to the Ilmenite Smelter Project for the production of high-grade titanium feedstock (the ‘Plant’), The National Industrialization Company (TASNEE) announces the successful operational ramp-up of first furnace to the load 42MW with stable operations achieved compared to the target load of 45MW (70% of furnace design capacity) for the execution of sustainable operations test. Currently, the first furnace integrity is being maintained at the load of 42MW and producing high quality chloride slag and pig iron which is being sold to the customers after repair of technical issues including roof refractories. The target load of 45MW is expected to be achieved in H2-2023. Management in consultation with technical experts believe that ramp-up the load to the original design capacity requires installation of new higher capacity electrical equipment. The company is evaluating viable options including the installation of new upgraded electrical equipment to achieve the original design capacity. Noting that the project consists of 2 furnaces.
Previous Announcement
Update on delay of operation for Ilmenite Smelter Project for the production of high-grade titanium feedstock
Date of Previous Announcement on Tadawul's Website
2021-12-05 Corresponding to 1443-05-01
Percentage of fulfilled achievement
100%
Event's Expected Completion Date
The company is targeting to complete evaluating viable options and achieve sustainable operation at desired power level in H2-2023 as this industry takes a long time to reach the sustainability of operation and production
Reasons for Exceeding the Announced End Date
NA
The costs associated with the event, and if they have changed or not with indication of the reasons.
Advanced Metal Industries Cluster (project owner) and Metso Outotec (contractor) companies 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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