MAADEN AWARDS 5 EPC CONTRACTS TO DEVELOP MAADENS WAAD AL SHAMAL PHOSPHATE PROJECT

Further to the Company announcements on 23 December, 2013 corresponding to (20-02-1435H), 25 November, 2013 corresponding to (22-01-1435H), 09 July, 2013 corresponding to (01-09-1434H), and on 25/12/2013 corresponding to (22-02-1435H) Saudi Arabian Mining Company (Maaden) announces that five EPC contracts have been signed today 04 February, 2014 corresponding to (04-04-1435H). The following contracts have been signed to construct production plants as part of Maadens Waad Al Shamal Phosphate project:
First, the contract for building a sulphuric acid plant and a power generation facility, valued at SAR 2,865 million (USD 764 million) which was awarded on a lump sum turnkey basis to SNC-Lavalin International Inc. & Sinopec Engineering (Group) Co. Ltd & SNC-Lavalin Arabia LLC (SLA) & Sinopec E&C Middle East Co.,Ltd. The sulphuric acid plant will consist of three sulphuric acid lines and when completed will have a production capacity of 4.9 million tonnes. The contract includes detailed engineering, procurement, and construction, and will take 35 months, starting from the date of the award, with completion expected in 4Q 2016.
Second, the contract for building a phosphoric acid plant valued at SAR 3,506 million (USD 935 million) which was awarded on a lump sum turnkey basis to Hanwha Engineering & Construction Co. Ltd & Hanwha Saudi Contracting Co. Ltd. The phosphoric acid plant will consist of three phosphoric acid lines and when completed will have a production capacity of 1.5 million tonnes. The contract includes detailed engineering, procurement, and construction and it will take 33 months, starting from the date of the award, with completion expected in 4Q 2016.
Third, the contract for building an ore beneficiation plant valued at SAR 2,089 million (USD 557 million) which was awarded on a lump sum turnkey basis to China Huanqiu Contracting & Engineering Corp & HQC Middle East Co.. The ore beneficiation plant when completed will have a production capacity of 5.3 million tonnes. The contract includes detailed engineering, procurement, and construction and will take 32 months, starting from the date of the award, with completion expected in 3Q 2016.
Fourth, the contract for building a fertilizer plant valued at SAR 2,250 million (USD 599.9 million) which was awarded to Intecsa Industrial. The fertilizer plant when completed will have a production capacity if 3 million tonnes, will be built at Ras Al Khair as part of Maadens Waad Al Shamal Phosphate project. The contract is expected to be completed in 4Q 2016.The contract includes detailed engineering, procurement and construction and will take 36 months, starting from the date of the award.
Fifth, the contract for building an ammonia plant valued at SAR 3,093 million (USD 825 million) which was awarded to Daelim Industrial Co. Ltd (OOK) & Daelim Saudi Arabia Co. Ltd (IK). The ammonia plant which will have the production capacity of 1.1 million tonnes, will be built at Ras Al Khair as part of Maadens Waad Al Shamal Phosphate project. Completion is expected in late 2016. The contract includes engineering, procurement and will take 39 months, starting from the date of the award.
Financing commitment letters have already been obtained and the financing agreements are expected to be signed in 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
Maaden will announce further details in due course.
Saudi Arabian Mining Company (Maaden), The Mosaic Company and Saudi Basic Industries Corporation (SABIC) own 60%, 25% and 15% of the joint venture developing Waad Al Shamal Phosphate project respectively