Saudi mining firm plans $7bn phosphate plant

  • Share via facebook
  • Tweet this
  • Bookmark and Share
(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!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Saudi Arabia considers its own nuclear options after Iran deal

Saudi Arabia considers its own nuclear options after Iran deal

Kingdom is engaged in a contest for power with the Islamic republic...

Greening the desert: How the UAE aims to change its carbon footprint

Greening the desert: How the UAE aims to change its carbon footprint

The UAE has set laudable targets to reduce energy use and ensure...

3
Sink or swim: Why is the Gulf so fascinated with underwater projects?

Sink or swim: Why is the Gulf so fascinated with underwater projects?

Gulf developers, particularly in Dubai, have announced a number...

Most Discussed
  • 1
    The UAE: On the road to economic development

    I understand and agree with the economic reasons for this move. They are logical. But bringing the environmental benefits into this isn't justified when... more

    Sunday, 2 August 2015 7:48 PM - Dubai2020