Maaden used SAR 4.2 bln to fund Waad Al Shamal project

Saudi Arabian Mining Co. (Maaden) used SAR 4.188 billion from its rights issue proceeds to fund its Waad Al Shamal Phosphate project, the miner said in a bourse statement.

Maaden said that an amount of SAR 871 million would go towards financing the company’s equity investment in the project.

The project’s beneficiation plant is 90.4 percent complete, while the sulphuric acid plant is 95.7 percent complete. Meanwhile, the phosphoric acid plant and the diammonium phosphate (DAP) plant are 90.9 percent and 78.2 percent complete, respectively.

The ammonia plant has already launched commercial operations, while trial operations at the project’s other facilities will start during the first half of 2017.

Maaden added that a total of SAR 509 million from rights issue proceeds were used to repay a renewable murabaha facility that had been temporarily used to fund costs at the Maaden Bauxite and Alumina Co., which is 100 percent complete. It also paid SAR 7 million to fund the balance of its equity contribution to the project.

Maaden Bauxite and Alumina project is currently under trial run. The project started commercial operations last October.

Maaden’s rights issue took place in 2014, and its proceeds reached SAR 5.6 billion. The offering costs reached SAR 23.9 million.