Ma’aden signs $3.7bn EPC deals for new Saudi phosphate project

SINGAPORE (ICIS)–Saudi Arabian Mining Co (Ma’aden) signed five engineering and procurement contracts (EPCs) worth a combined Saudi riyal (SR) 13.8bn ($3.7bn) on Tuesday to kick start the development of its Waad Al Shamal phosphate project.

The project includes a 4.9m tonne/year sulphuric acid plant with three lines; a 1.5m tonne/year phosphoric acid plant with three lines; and a 5.3m tonne/year ore beneficiation plant, Ma’aden said in a statement.

A 3m tonne/year fertilizer plant and a 1.1m tonne/year ammonia plant will also be built at Ras Al Khair as part of the Waad Al Shamal phosphate project.

SNC-Lavalin International Inc, Sinopec Engineering (Group) Co Ltd, SNC-Lavalin Arabia and Sinopec Middle East Co Ltd were awarded a Saudi riyal (SR) 2.87bn contract to the sulphuric acid plant and a power generation facility that should be completed by the fourth quarter of 2016.

Hanwha Engineering & Construction and Hanwha Saudi Contracting, on the other hand, were tasked to build the SR3.51bn phosphoric acid plant.

A third contract was awarded to China Huanqiu Contracting & Engineering Corp and HQC Middle East Co to build the ore beneficiation plant worth SR2.09bn, for completion in the third quarter of 2016.

To Intecsa Industrial, Ma’aden has awarded a SR2.25bn contract to build the fertilizer plant at Ras Al Khair, while the ammonia plant worth SR3.09bn at the same site will be built by Daelim Industrial Co Ltd and Daelim Saudi Arabia Co Ltd.

The fertilizer plant is due for completion in the fourth quarter of 2016, while the ammonia plant should be completed in late 2016.

The Waad Al Shamal phosphate project is a joint venture of Ma’aden (60%), The Mosaic Company (25%) and Saudi petrochemical giant SABIC (15% ).

“Financing commitment letters have already been obtained and the financing agreements are expected to be signed in [second quarter] 2Q 2014. Prior to that time, the cost of implementing the project will be met from funds provided by the partners in proportion to their shareholdings,” Ma’aden said.

($1 = SR3.75)