09 July 2013 09:00 [Source: ICIS news]
DUBAI (ICIS)--Saudi Arabian Mining Co (Ma'aden) has awarded a contract worth Saudi riyal (SR) 3.09 bn riyal ($825m) to South Korea's Daelim Industrial Co for the construction of a new ammonia plant, the company said on Tuesday.
The plant, which will have a 1.1m tonne/year capacity, is expected to be completed in end-2016.
The contract includes engineering, procurement and construction over 39 months, starting from the date of the award.
“The ammonia plant will be built at Ras Al Khair as part of Ma'aden's Waad Al Shamal Phosphate project,” Ma’aden said in a bourse filing.
The ammonia plant will be the first of several processing plants, which Ma'aden's Waad Al Shamal Phosphate project will construct to develop a fully integrated phosphate production complex at the King Abdullah Project for the Development of Waad Al Shamal Mineral Industrial City, and at Ras Al Khair Mineral Industrial City.
The investment cost of the entire phosphate complex is estimated at SR26bn, of which approximately SR21bn will be invested in Waad Al Shamal Mineral Industrial City.
Other processing plants under the multibillion-dollar Waad Al-Shimal phosphate project, will also be constructed, the statement said.
The project partners, together with project financial advisor HSBC bank, expect to sign the financing of the complex by the fourth quarter.
“Ma'aden and its partners intend to fund the project until the financing closure is secured,” it added.
($1 = SR3.75)
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