- Magnum Mining is to acquire 50% of Saudi Midmetal
- “It is intended” Midmetal operate a green pig iron factory in the Kingdom
- This would be done using Magnum’s ‘HiSmelt’ tech
Magnum Mining (ASX:MGU) has outlined a fresh overview of its plans for Saudi Arabian for the market to digest on Friday morning.
The company expects to acquire 50% of Saudi-based metals company Midmetal as it intends for the latter to also operate its green pig iron plant in Saudi Arabia.
The ultimate ESG-backed pre-steel product would be made using Magnum’s “HiSmelt” technology which includes biochar in the manufacturing process.
Magnum expects costs for the plant – both construction and operational – to be “shared equally between the shareholders of Midmetal.” What exactly that means wasn’t entirely clear, though, the company did provide insight into the balance of powers.
“Magnum and the Saudi shareholders have the right to appoint two directors to the Board of Midmetal from which pool a Chairman will be appointed,” Magnum wrote on Friday.
“After the Chairman’s first term, the chairmanship will alternate between the Shareholder’s appointee. In future, the Midmetal Board will appoint a Manager to manage the Project for a fee to be mutually agreed.”
However, Magnum did remind on Friday that a “full financial model has not been completed.” It blamed the nature of being at the early stages of the project and “regulatory constraints.”
Regardless, the Board at Magnum maintain the venture is “compelling.”
Magnum ultimately seeks to ship iron ore from Nevada to Saudi Arabia for sale into third party unspecified markets.
MGU shares last traded at 1.6cps, flat on Friday morning.