US firm to invest $1bn in Saudi fertilizer JV

  • Share via facebook
  • Tweet this
  • Bookmark and Share
(Photo for illustrative purposes only)

(Photo for illustrative purposes only)

US fertilizer company Mosaic Co plans to invest up to $1 billion in a joint venture to produce phosphate in Saudi Arabia, giving the Minnesota-based company a new geographic source of the crop nutrient.

The $7 billion project, including a mine and chemical complexes to make phosphate fertilizer, will be 60 percent owned by Saudi Arabian mining and metals company Ma'aden. Mosaic will own 25 percent and petrochemical company Saudi Basic Industries Corp will hold 15 percent.

The Wa'ad Al Shammal phosphate project in northern Saudi Arabia would produce 3.5 million tonnes of finished product annually, including phosphate, animal feed and other products, starting in late 2016.

The project will complement Mosaic's existing phosphate production in Florida and Louisiana, said the company's chief executive, Jim Prokopanko.

Mosaic's role will be to help design, build and operate the project, in exchange for one quarter of the project's production.

The three companies expect to sign a definitive agreement in the first half of 2013.

Related:
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

Posted by: Dr MP Sukumaran Nair

Mosaic, Ma'aden and Wa'ad Al Shammal will be an interesting association to consolidate their competing interests in the asian market

All comments are subject to approval before appearing

Further reading

Features & Analysis
Is Gulf developers' love of London set to cost them a lot more?

Is Gulf developers' love of London set to cost them a lot more?

Controversial changes to property planning legislation in the...

1
Battling the pirates of the Gulf's TV airwaves

Battling the pirates of the Gulf's TV airwaves

A coalition of broadcasters and satellite providers is campaigning...

Dubai's smart palm tree technology revealed

Dubai's smart palm tree technology revealed

Smart Palms harness the sun's energy to allow people to look...

Most Popular
Most Discussed