Arabian American Development sells assets from Saudi mine

26 August 2012 (Last Updated August 26th, 2012 18:30)

Arabian American Development (ARSD) has executed a $11.5m sale of zinc and copper concentrate from its 37%-owned Al Masane Al Kobra (AMAK) mine in Saudi Arabia.

Zinc, Copper ore

Arabian American Development (ARSD) has executed a $11.5m sale of zinc and copper concentrate from its 37%-owned Al Masane Al Kobra (AMAK) mine in Saudi Arabia.

The contract with the buyer of the copper concentrate, an Indian smelter, allows for a shipment of up to 7,000 metric tons of product which will generate over $11.5 million in gross revenue.

The same quantity of zinc concentrate was sold to a South Korean smelter and will generate a further $4.5 million in revenue.

The materials are expected to be shipped from the Port of Jizan, Saudi Arabia, in the first half of September.

The final loaded amounts are subject to various conditions, such as the nominated cargo ship's size, as well as the timing of its arrival in the Port of Jizan.

Arabian American Development Company president and CEO Nick Carter said that the sale is the result of a longstanding collaboration with the company's Saudi partners, marketing and sales partners and the mill operator.

"Current market demand for zinc has made the mine's zinc concentrate attractive to zinc smelters, and the mill is running currently at about 95% capacity," Carter added.

"The mine is entering the stage of full and routine operation. Recovery of metal from the ore is very good, the quality of the concentrate is good, and we are looking forward to establishing a good track record for quality and reliability in the worldwide marketplace.


Image: AMAK will ship its zinc, copper concentrates from September. Photo: Rob Lavinsky