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

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Slumping oil won't derail $500bn Gulf infrastructure plan

Slumping oil won't derail $500bn Gulf infrastructure plan

Rich GCC nations will deploy huge reserves to maintain a breakneck...

Saudi Arabia builds start-up culture with state oil money

Saudi Arabia builds start-up culture with state oil money

Gov't has previously has found it hard to promote start-ups in...

How QSTP is incubating innovation

How QSTP is incubating innovation

Courtney Trenwith examines how Qatar’s dedicated research and...

Most Popular
Most Discussed