SABIC, Maaden to build 3m tonne Saudi DAP plant

12 March 2007 14:42  [Source: ICIS news]

LONDON (ICIS news)--SABIC has formed a joint venture with mining firm Maaden for the production of diammonium phosphate fertilizer (DAP) in Saudi Arabia, the firms said in a joint statement on Monday.

 

The project consists of a phosphate mine and processing plant at Al-Jalamid in the north of the kingdom, producing feedstock for a new fertilizer plant complex at Raz Az Zawr, near Jubail.

 

Maaden recently signed contracts to design sulphuric acid, phosphoric acid, ammonia and DAP plants, with 3m tonne/year of DAP expected to be produced. The complex was expected to go on stream by mid-2010.

 

SABIC will take a 30% stake in the project, with the 70% balance of ownership being retained by Maaden.

 

Northern Saudi Arabia’s phosphate ore reserves were estimated at 1.6bn tonnes in addition to further resources of 1.5bn tonnes.

 

“The project caters for effective collaboration between the two leading companies,” said Maaden chief executive Abdullah Al-Dabbagh.

 

“Maaden will furnish technology and expertise in the phosphate industry while SABIC will provide technology and marketing expertise in the field of nitrogen fertilizers.”

 

The companies added that the nation’s Public Investment Fund was financing a new north-south railroad which would be utilised to transfer the phosphates from Al-Jalamid to Raz Az Zawr.

ICIS Copyright © Reed Business Information 2009

Author: Mark Watts
+44 20 8652 3214

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