Metso Outotec sign agreement with Saudi Arabia’s AMIC on Ilmenite Smelter Project in Jazan City, KSA
4 Apr 2023
Finnish company to provide required engineering, technical and project management support and enhancement services over an agreed period of time for project’s Furnace 2
Metso Outotec and Advanced Metal Industries Cluster Company Limited (AMIC), a subsidiary of Saudi Arabia’s Tasnee, have signed a full and final settlement agreement in relation to the original engineering, procurement and construction (EPC) contract, signed in May 2012, on the Ilmenite Smelter Project in the Kingdom’s Jazan City.
Metso Outotec, the Finnish solutions and services provider for the aggregates, minerals processing and metals refining industries globally, informed in a statement that after modifications and construction works, the smelter’s Furnace 1 has successfully started operating and has been ramping up since December 2021. The ramp-up continues and with ongoing optimisation works, the Furnace 1 has been producing on-spec marketable high-quality chloride slag and pig iron.
As part of this Settlement Agreement, Metso Outotec and AMIC have agreed to enter into a Collaborative Refurbishment and Optimisation Works Contract. This contract entails additional value engineering and enhancements for the Furnace 2 to ensure sustainable operating performance at higher operating rates. The Furnace 2 is expected to start its ramp-up of operations during 2025.
As part of the Collaborative Refurbishment and Optimisation Works Contract, Metso Outotec will provide the required engineering, technical and project management support and services over an agreed period of time.
The provision, which Metso Outotec has earlier booked for this project, is sufficient to cover the costs related to the Settlement Agreement, including the additional engineering and enhancements for the Furnace 2, said the Finnish company.