AMAK Unveils 2025 Strategic Initiatives for Sustainable Growth and Market Expansion

• Boost growth and operational excellence through the exploration of 21 licenses across the Kingdom for precious, base, and industrial minerals
• Launch of new industrial ventures to support production and tap into new market segments
• Underscores commitment to the Kingdom’s vision of sustainable development by connecting facilities to the national power grid and significantly expanding its dry tailing capacity to meet growing production and reduce carbon footprint

AMAK (Al Masane Al Kobra Mining Company), a leading mining company, recently unveiled its growth strategy for 2025 and beyond. The strategy, fully aligned with the Kingdom’s vision of economic diversification and sustainable development, was launched during AMAK’s Board of Directors meeting.

This new growth strategy, set to propel AMAK to new heights by the end of 2025, focuses on expanding existing opportunities and exploring new ventures that promise to deliver substantial value for its shareholders.

Existing Growth Pillars

The development of existing gold deposits, expansion of satellite pits to supplement the gold processing plant, and exploration work on newly acquired tenements and underground mines have been highlighted as significant focus areas within AMAK’s existing growth opportunities:

1. Khutainah Gold Project Development: Production from the Khutainah gold deposit will commence within six months of receiving the mining license, anticipated later this year (2024). The gold mineralization extends over 1.5 kilometers, presenting a significant production opportunity.
2. Expansion of Nearby Satellite Pits: Develop and initiate production from satellite pits, such as Sukkari, to supply the Guyan Gold Plant. The Guyan Exploration and Mining Licenses, including Al Aqiq, contain several shallow mineralized zones that can extend the operational life of the Guyan Gold Plant. We will also assess the gold resource potential of the newly acquired Al Hajira tenement as an additional ore source.
3. Guyan Underground Mining: AMAK will start underground mining operations at the Guyan Gold Mine by Q2 2025 to supply the Guyan Gold Plant. The underground reserves are higher, and the mining costs are considerably lower than deep open-pit operations. This shift is expected to reduce the cost of gold production by $400 per ounce.
4. Nuham Iron Ore Project Development: Advance the Nuham Iron Ore Project (more than 7Mt resources), pending the mining license approval from the Ministry of Industry and Mineral Resources, which is currently in its final stages and anticipated by the end of 2024. Once granted, we will commence production of oxide iron ore for cement factories in the Kingdom, which exceeds approximately 1 million tonnes annually.
5. Dry Tailing Storage Capacity Expansion: By the end of 2025, expand the dry tailing storage capacity to accommodate all current and future mineable reserves at Al Masane, Moyeath, Guyan, Khutainah, and other satellite pits. This will not only significantly support the exploration of new and existing mining sites but will also have a measurable positive impact on the company’s sustainability efforts.

New Growth Opportunities

Among the new growth opportunities earmarked by this strategy is the launch of a wholly-owned drilling company dedicated to accelerating exploration at AMAK’s existing 21 licenses, which include 17 licenses for base metals at a total area of 1296.4 square kilometers, two permits for industrial minerals at 110.91 square kilometers for quartz, manganese, and silica, and two licenses for mining gold, copper, zinc, and silver at an area of 52,48 square kilometers. The new company will also offer drilling and related services to other customers across the Kingdom.

Acquiring new, promising exploration licenses through a bidding process with the Ministry of Industry and Mineral Resources will also be an area of focus.

Expediting exploration activities at its newly acquired industrial mineral concessions for silica, manganese, and quartz

In line with its commitment to the Kingdom’s vision of sustainable development, AMAK will initiate the connection of its facilities to the national power grid. This initiative is expected to reduce diesel consumption and improve the company’s carbon footprint.