Metso Outotec and AMIC sign a full and final Settlement Agreement on Ilmenite Smelter Project in Jazan City in Kingdom of Saudi Arabia

Metso Outotec and Advanced Metal Industries Cluster Company Limited (AMIC), a subsidiary of 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.

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 optimization 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 Optimization 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 Optimization 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.

Further information, please contact:

Nina Kiviranta, General Counsel, Metso Outotec Corporation, tel. +358 50 5988805, email: nina.kiviranta@mogroup.com

Metso Outotec is a frontrunner in providing sustainable technologies, end-to-end solutions and services for the aggregates, minerals processing and metals refining industries globally. By helping our customers increase their productivity, improve their energy and water efficiency and environmental performance with our process and product expertise, we are the partner for positive change.

Headquartered in Helsinki, Finland, Metso Outotec employs over 16,000 people in close to 50 countries and sales for 2022 were about EUR 5.3 billion. The company is listed on the Nasdaq Helsinki  mogroup.com, www.metso.com/twitter/