AMAK to establish SAR 200M closed joint-stock mining firm

Logo of Almasane Alkobra Mining Co. (AMAK)

Almasane Alkobra Mining Co. (AMAK) said its board approved, on Sept. 16, the incorporation of a closed joint-stock company named Sanam Mining Co., or another name approved by the Ministry of Commerce, with a capital of SAR 200 million.

AMAK will own 51% of the new company, while Ashum Rawasi Establishment for Mining, owned by Chairman Mohammed Abalala (related party), will hold 24%, AMAK said in a statement to Tadawul.

Majid Ali bin Musallam, a major AMAK shareholder and a relative of board member Ibrahim Ali bin Mussalem, will own 15%.

Arab Mining S.A. will own the remaining 10%. It is indirectly owned by the Arab Mining Co. (Jordan), a substantial shareholder in AMAK.

Arab Mining Co. (Jordan) owns 100% of the capital of Arab Mining Co. (Fujairah), which in turn owns 100% of the capital of Arab Mining S.A.

The new company will be headquartered in Jeddah and will operate in mining activities, subject to obtaining the necessary approvals and licenses from the relevant authorities, the statement said.

Sanam Mining will not engage in any exploration or mining activities in the Najran and Aseer regions, ensuring that it does not compete with AMAK within the geographic scope of the two regions. It will incorporate this restriction into its articles of association.

The company said that the Chairman abstained from voting as he owns Ashum Rawasi Establishment for Mining.

Vice Chairman Ibrahim Ali Musallam also abstained as he is a relative of Majid Ali bin Musallam.

Board member Fekry Mohamed abstained as he serves on the board of the Arab Mining Co. (Jordan).

Board member Mohammed Al Shehhi abstained as he chairs the boards of the Arab Mining Co. (Jordan), Arab Mining Co. (Fujairah), and Arab Mining S.A.

The move is part of its strategy to develop its operations and strengthen future investments, helping improve efficiency and support sustainable growth in the Kingdom's mining sector, the statement said.

Any material developments will be announced in due course.