Mosaic has announced that it has entered into an agreement with Maaden and Saudi Basic Industries Corporation (SABIC) for a joint venture to develop integrated phosphate production facilities in Saudi Arabia
The US$7bn greenfield project ? Wa'ad Al Shammal Phosphate Project ? would be built in Wa'ad Al Shammal Minerals Industrial City and would include further expansion of processing plants in Ras Al Khair Minerals Industrial City.
Ma'aden, Mosaic and SABIC are expected to own 60 per cent, 25 per cent and 15 per cent of the joint venture respectively.
The venture would also develop a mine and chemical complex to produce phosphate fertilisers, animal feed, food-grade purified phosphoric acid and sodium tripolyphosphate.
The cost-efficient facilities are expected to have a production capacity of approximately 3.5bn kg of finished product per year. Under the agreement, Mosaic would contribute expertise to the design, construction and operations of the new facilities.
Jim Prokopanko, Mosaic CEO, said, "This cost-effective phosphate project would enable Mosaic to further diversify our sources of phosphates and gives us improved access to key agricultural countries. Our growing global reach further enables us to fulfill Mosaic's mission, to help the world grow the food it needs, while delivering compelling shareholder value."
Operations are expected to commence in late 2016.
