Saudi Arabian Mining Co, the state- owned metals producer known as Ma’aden, increased its stake in a project to build an aluminum industrial complex with Alcoa in Saudi Arabia.
Ma’aden’s decision to raise its stake to 74.9 percent from 60 percent won’t impact the schedule and size of the project, the Riyadh-based miner said in a statement on the Saudi bourse Web site today. New York-based Alcoa’s stake decreased to 25.1 percent, Ma’aden said.
The Saudi mining company in December signed a contract with Alcoa to build the 40.5 billion-riyal ($10.8 billion) industrial complex to supply aluminum to Saudi Arabia and global markets as part of the kingdom’s attempt to develop its mineral resources. The world’s largest oil exporter plans to spend $400 billion on roads, energy and infrastructure projects over five years starting last year to stimulate the economy.
The aluminum project includes a bauxite mine in Qassim, a province in northeast Saudi Arabia, with a production capacity of 4 million metric tons. The material will be shipped by rail to a 1.8 million metric ton-a-year alumina refinery and a 740,000 metric ton-a-year aluminum smelter in Ras Az Zawr on the Persian Gulf. The smelter will start production in 2013 and the refinery in 2014.
Ma’aden is studying “all the financial tools” available to finance the project after increasing its stake, according to the statement. The company didn’t provide a reason for the change in ownership of the project.
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