Further to the announcement on 07/05/1434H (corresponding to 19/03/2013G), the Saudi Arabian Mining Company (Maaden) announces that it has signed today 27/09/1434H (corresponding to 05/08/2013G) a Shareholders Agreement with The Mosaic Company and Saudi Basic Industries Corporation (SABIC) to develop jointly a fully integrated, world-class phosphate production facility in the Kingdom of Saudi Arabia at the King Abdullah Project for the development of Waad Al Shamal Mineral Industrial City and Ras Al Khair. Maaden, Mosaic and SABIC will own 60%, 25% and 15% of the joint venture respectively.
The estimated cost of the project is 26 billion Saudi Riyals. Production at the new facilities is expected to commence in late 2016 with a total production capacity of approximately 16 million tonnes per year
The facilities will produce as finished products approximately 3 Million tonnes of phosphate and compound fertilizers in addition to 440 thousand tonnes of phosphate downstream products including purified phosphoric acid (PPA), sodium tri-polyphosphate and Di-calcium Phosphate and Monocalcium Phosphate (DCP/MCP). Maaden will further study down-stream opportunities for the project.
The Company anticipates that Engineering, Procurement and Construction contracts will be awarded by the end of 2013.
Maadens partners will pay to Maaden contractual dues in the amount of SR 1.44 billion .The amount will be paid in two equal installments with 50% due on signing of the Shareholders Agreement and 50% on June 30, 2016. The amount will be recorded in the consolidated financial statements in accordance with the generally accepted accounting principles in Saudi Arabia.
The partners together with project financial adviser, HSBC, expect to complete the financing for the project from the financial institutions by Q4 2013.
Maaden will announce any further details in due course.
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