The Saudi Arabian Mining Company (Maaden) has entered into an agreement with The Mosaic Company and the Saudi Basic Industries Corporation (SABIC) to develop a fully-integrated phosphate production facility in Saudi Arabia
Ma'aden, Mosaic and SABIC will own 60 per cent, 25 per cent and 15 per cent of the project respectively according to the deal.
A statement from Ma'aden said that as one of the largest integrated phosphate fertiliser facility, the factory will be expected to double Ma'aden?s cost effective phosphate production and improve its access to key global markets.
In addition, the project will provide development of local communities in the region by opening up to 1,500 direct job opportunities. The estimated cost of the project will be approximately US$7bn and production at the new facility will be expected to commence in late 2016 with a total capacity of 16mn tonnes per year.
The facilities will produce, as finished product, close to three million tonnes of fertiliser products such as DAP/MAP and NP/NPK and up to 440,000 tonnes of downstream products, including purified phosphoric acid used in food industries, sodium tripolyphosphate used in detergent manufacturing and Dicalcium Phosphate and Monocalcium Phosphate used in the manufacturing of animal feed.
Ma'aden president and CEO Khalid Al-Mudaifer said, ?The partnership is a crucial step in the execution of King Abdullah Project for the Development of Wa'ad Al Shammal Mineral Industrial City. This agreement has already attracted global expertise to the project. In just one year, we have engaged local and international contractors from the US, Europe and Asia.
?We expect to finalise all engineering, procurement and construction contracts before the end of the 2013 and begin construction in 2014. With HSBC appointed as financial advisor, the partners are expecting the project financing to conclude in Q4 of this year.?
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