On July 6, news broke that government-owned mining major, Arab Mining Company (“ARMICO”) has purchased a 10 per cent stake for $37.3 million in Al-Masane Al-Kobra Mining (AMAK); the joint stock company owned by mining conglomerate Arabian American Development Company. One month later, on August 4, AMAK posted its second quarter results which stated in no uncertain terms that ARMICO’s entrance onto its investor register had enabled the company to continue with its aims to commence full production in early 2012, signalling how valuable ARMICO’s input at this crucial stage has been.
This deal is the latest in a long line of ventures and partnerships that Jordan-based ARMICO has been an instrumental force behind throughout its 35-plus years in existence and, on reflection, the group’s shareholders demonstrate how diverse, powerful and highly regarded the vehicle truly is: The United Arab Emirates (UAE) has 20.2 per cent, Saudi Arabia has 20.2 per cent, Iraq has 20.2 per cent, Kuwait has 20.2 per cent, and another 11 Arab nations cover the remaining 19.2 per cent.
An Arab mining powerhouse
On June 10, 1974, the Arab Economic Unity Council in its Ordinary Session decided to form ARMICO.
“The objective of this company is to consolidate the Arab Economic relations on basis of fruitful and constructive cooperation realizing the importance of utilizing the mineral resources in economically diversified investments in productive and development projects, due to their role in consolidating economic integration among the member states and to enhance the momentum of development in these states,” ARMICO states.
“ARMICO was established in accordance with the Memorandum of Association signed on the first day of February 1975, where the shareholders in this company shall be the Arab Governments, corporations, companies or organizations nominated by these governments.”
The group has been headquartered from Amman, Jordan, since its founding, later emerging and establishing operational hubs and subsidiary office setups in various other echelons of the globe. It now acts as the go-to vehicle for all technical, industrial and commercial operations related to the Arab mining industry, in addition to other related works and complimenting project disciplines such as “exploration, extraction, concentration, processing, transportation, marketing and manufacturing, in particular.”
Despite covering such a wide-ranging, global scale of different activities, ARMICO has retained a transparent overarching aim to facilitate joint Arab cooperation “towards the investment of Arab Mineral Resources by establishing or participating in the establishment of joint ventures through agreements with the concerned Arab Governments, in addition to the Private Sector in the fields of mining and those related and complementary industries,” the company states.
Now in its 36th year, the company continues to act as a driving force in industry and has been associated with some of the best known mining projects across a range of mining brackets including copper, iron ore, base metals and miscellaneous metal ores, as well as quarrying, fertilizers, and various types of manufacturing. Projects include:
The Arab Potash Company (19.92 per cent)
The Socie’te’ Nationale Industrielle et Miniere (SNIM) (5.66 per cent)
The Gulf Stone Company (SAOG) (25 per cent)
Industries Chimiques Du Fluor (ICF) (26.67 per cent)
Arab Detergent Chemicals Company (Aradet) (10 per cent)
Arab Engineering Industries Company Ltd (AEICO) (7.30 per cent)
Jordan Abyad Fertilizers & Chemicals Company (10 per cent)
Still a market leader
Multi-disciplinary, strategically located and a historical source of firm backing and success, ARMICO’s work today reveals that its lifelong reputation for best-in-class project development and input reigns supreme.
In addition to being an advantageous buy, its latest moves to acquire its portion of AMAK show how this conservative group continues to move according to market demand and pursue its company-wide goal to invest in and exploit Arab mineral resources to their full potential. It also highlights the expertise any company partnering with ARMICO seeks to gain. In paying SR28 per share (equating to five million shares) for its holding in AMAK, ARMICO also took up a seat on the company’s board, promptly filling the post with Sultan Al-Shawli, Saudi Deputy Minister for Petroleum and Minerals; a highly desirable individual to place on any board by any company estimation.
For AMAK and for any party entering into a similar deal with ARMICO, the mining house offers its partners and subsidiary units an unrivalled voice in the Arab mining industry and delivers instant prestige and recognition; strengths that cannot be bought, but earned through more than three decades leading its domestic sector. For years industry worldwide has eagerly anticipated the oncoming investment boom in Arab’s mining landscape and central to any future progress is (and will be) ARMICO. A responsible, prolific and well-regarded company encompassing some of the most knowledgeable and highly acclaimed individuals throughout the nation’s states, ARMICO is both unique in its structure, standout in its capabilities and the first port of call for anyone considering investment or entrance into the industry.