Signs letter of intent for deal worth $590m to build world's largest fully integrated aluminium complex
State-run Saudi Arabian Mining Co (Maaden) and US company Alcoa signed a letter of intent with South Korea's Samsung Engineering worth $590m to build part of a mega aluminium complex.
Alcoa and Maaden teamed up in 2009 to build the world's largest fully integrated aluminium complex in Ras Az Zawr, on the Gulf coast, fast becoming Saudi Arabia's mining cluster.
Maaden signed a letter of intent with Samsung which involves engineering, procurement and construction of a rolling mill as well as testing the plant, Maaden said in a statement on the bourse website on Wednesday.
The project would take 32 months to complete, it added.
The statement named the company only as Samsung but an industry source said the deal was signed with Samsung Engineering.
The first phase of the aluminium complex, which includes a smelter and a rolling mill, would be up and running by 2013 while a bauxite mine and an alumina refinery is set to start by 2014.
The rolling mill would produce 380,000 tonnes annually of aluminium sheets, it said. When Maaden and Alcoa first announced the project they said the mill would have a capacity of up to 460,000 tonnes.
This will be the second Rolling Mill in the GCC; second to Gulf Aluminium Rolling Mill Co. "GARMCO" in Bahrain,with a capacity of 162,000 MT/Year.
The rolling mill would produce 380,000MT annually of Aluminium sheets (which a small portion of this will be sold in the Middle East market, but the majority of it will be sold in S. Korea & Europe) that all is good, but also one thing Maaden and Alcoa should consider is a foil Mills, as the demand in Middle East now about 70,000MT/Year and it is on the raise; about 50,000MT/Year comes mainly from China and 20,000MT produced locally.