Saudi mining firm plans $7bn phosphate plant

(Photo for illustrative purposes only)

(Photo for illustrative purposes only)

Saudi Arabian Mining Company (Maaden) is looking to raise US$7bn to fund a phosphate project with a production capacity of 16m tonnes per year.

The cash will go towards the Umm Wual development at Waad Al-Shimmal City in the north of the country, which is being developed by Maaden and US firm Fluor Corp and Bechtel, following a SAR977m (US$260.5m) deal which was struck in December.

Connected infrastructure at Ras Al Khair will also be improved using some of the finances.

The amount of money to be raised from the market has yet to be finalized, said Khalid Al-Rowais, vice president of finance at Maaden, but government funds, international and local banks, and export credit agencies would be involved. Issuing an Islamic bond is also a possibility.

“A sukuk is an option but the most important thing is to have the right balance to suit the project,” Rowais said, adding that talks were ongoing with its financial advisor HSBC.

Saudi government funds the Public Investment Fund and the Saudi Industrial Development Fund, as well as ECAs, will be approached in April about funding the project, with invitations to commercial banks expected in July.

Production of phosphate is expected to start in late 2016, with the scheme having a production capacity of 16m tonnes per year of phosphate concentrate, sulphuric acid, phosphoric acid, calcium monophosphate and calcium diphosphate.

Related:
Companies
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Fly economy class, share an office: Qatar's new reality

Fly economy class, share an office: Qatar's new reality

Gov't employees are being asked to make savings as low energy...

Diving for answers: What's happened to Dubai Pearl?

Diving for answers: What's happened to Dubai Pearl?

The mysterious inability of a $6bn mega-project on prime land...

7
Finding office space in Dubai

Finding office space in Dubai

Core Savills Start-Up Environment in Dubai report said combined...

Most Discussed
sponsoredTracking