Saudi Ma’aden secures $2bn loan for phosphate project

03 April 2014 17:26  [Source: ICIS news]

Maaden plantDUBAI (ICIS)--Saudi Arabian Mining Company (Ma’aden) has secured $2bn in financing from state-owned Public Investment Fund (PIF) for its planned phosphate project in the north of the kingdom, the company said on Thursday.

“Ma’aden announces that PIF has approved today $2bn to fund part of Waad Al Shamal Phosphate Company,” it said in a bourse filing.

“The loan will be for a period of 17 years and will be repaid in half yearly instalments with a 5 year grace period,” the company added, without giving further details.

The Waad al-Shamal project will involve total investment of around $9bn for a phosphate mine, several major processing facilities, smaller downstream factories and a residential area.

In December, Ma’aden said it had received initial approval of Saudi riyal (SR) 15.75bn ($4.2bn) from banks and financial institutions to fund the project.

In the same month Ma’aden had also awarded three contracts worth a combined SR8.46bn to Canadian and Asian companies to build phosphate mining and production.

Canada's SNC Lavalin and China's Sinopec Engineering Group have won a SR2.86bn contract to build a power plant and a sulphuric acid plant which has a production capacity of 4.9m tonnes/year.

South Korea's Hanwha Engineering & Construction Co won a contract to build a phosphoric acid plant worth SR3.5bn. The plant will have a production capacity of 1.5m tonnes/year.

China Huanqiu Contracting & Engineering Corp Co won a contract to build an ore beneficiation plant worth SR2.08bn with a production capacity of 5.3m tonnes/year.

The project in Waad al-Shimal City is a joint venture between Ma’aden, Saudi Basic Industries Corp (Sabic) and Mosaic. Ma’aden owns 60%, Mosaic 25% and SABIC 15% in the project.


By: Aamir Ashraf



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index