Saudi Arabia’s Maaden to award four fert contracts

05 June 2007 17:36  [Source: ICIS news]

LONDON (ICIS news)--Saudi Arabian Mining Co (Maaden) is finalising lumpsum turnkey contracts for its phosphate fertiliser project in Ras az-Zawr, Saudi Arabia, a Maaden spokesman said on Tuesday.

 

South Korea's Samsung Engineering will build the ammonia plant, Finland's Outotech the sulphuric acid plant, France's Litwin the phosphoric acid unit and Spain's Dragados the diammonium phosphate (DAP) granulation facility, he told ICIS news.

 

The formal contract signings will take place in Riyadh on 25 June.

 

The Samsung Engineering contract is worth $946m (€700m) contract, he said. The values of the other three contracts were not disclosed.

 

Due on stream by mid-2010, the Ras az-Zawr fertiliser complex will have the capacity to produce 3,300 tonnes/day of ammonia, 13,500 tonnes/day of sulphuric acid, 4,380 tonnes/day of phosphoric acid and 3m tonnes/year of diammonium phosphate (DAP).

 

Maaden is establishing a 70:30 joint venture with SABIC to implement the Ras az-Zawr project plus a phosphate mine and processing plant at Al-Jalamid. The companies signed a heads of agreement to create the joint venture in March.

 

The combined investment cost of the Al-Jalamid and Ras az-Zawr projects is estimated at SR13bn ($3.5bn).

 

Last year, Maaden awarded contracts for engineering and "production of open book estimates" to Outotec for sulphuric acid, Litwin for phosphoric acid and Dragados for DAP.

 

($1 = SR3.75/$1 = €0.74)

By: Anna Jagger
+44 20 8652 3214

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