Maaden awards SR2.25bn deal for phosphate plant

ALKHOBAR: Saudi Arabian Mining Co. (Maaden) has awarded a SR2.25 billion ($600 million) contract to build a phosphate plant at the port city of Ras Al Khair, part of a $7 billion program designed to help diversify the Saudi economy.
The plant is part of the Umm Wual project, itself part of the development of a new industrial city in the north of the country known as the Waad Al-Shimal City for Mining Industries.
The Umm Wual project is a joint venture between Maaden, Saudi Basic Industries Corp. and Mosaic.
The phosphate plant to be built by Spain's Intecsa Industrial would add nearly 1.5 million tons annually of phosphorus oxide to Maaden's planned phosphate capacity.
Intecsa will carry out detailed engineering, procurement and construction of the plant, due to be completed in the fourth quarter of 2016, Maaden said in a statement to the Saudi bourse.
Waad Al Shimal is a new industrial city intended to create jobs for Saudis as the world's largest oil exporter diversifies its economy away from relying on oil by developing its mining industry.
Maaden added financing from financial institutions will start during 2014 as the partners aim to close fundraising for the $7 billion project before the end of the year.
"Prior to that time the costs of implementing the project will be met from funds provided by the partners in proportion to their shareholding," it said.