Riyadh loans Maaden Phosphate Co $1bn for project

14 July 2008 16:25  [Source: ICIS news]

MUMBAI (ICIS news)--Saudi Arabia's Maaden Phosphate Co (MPC) has signed a $1.01bn, 16-year loan agreement with the government's Public Investment Fund (PIF), the firm said on Monday.

MPC is developing an integrated project that will exploit phosphate deposits at Al-Jalamid in the north of Saudi Arabia and use local natural gas and sulphur resources to manufacture diammonium phosphate (DAP) fertilizer at Ras az-Zawr on the eastern Gulf coast.

“We are very pleased today to be signing this loan agreement with the Public Investment Fund which represents another major forward step for the delivery of our phosphate project,” said MPC chairman Abdallah Dabbagh.

The loan comes in addition to major debt agreements signed last month. MPC said that direct funding will also come from the Saudi Industrial Development Fund for $135m.

MPC is a joint venture of Saudi Arabian Mining Co (Maaden) and Saudi Basic Industries Corp (SABIC).

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By: Aaron Rodrigues
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