Maaden signs SR3.75bn financing deal as aluminum project gathers pace
2011-11-28 10:40:07 [Print]
The Saudi Arabian Mining Company (Maaden) announced Sunday that its subsidiary, Maaden Bauxite and Alumina Company, has signed a $1 billion (SR3.75 billion) financing agreement with the Public Investment Fund (PIF) for the second phase of its aluminum project.
The second phase, which includes a bauxite mine at Al-Baitha and an alumina refinery at Ras Al-Khair, will cost SR13.445 billion.
The PIF loan will be repaid over a period of 16 years, starting in 2017.
The project, a joint venture between Maaden (74.9 percent) and Alcoa (25.1 percent) is being built in two phases, both of which are now under construction.
The first phase consists of an aluminum smelter and rolling mill, both situated at Ras Al-Khair, which will begin operating in 2013.
The mine and refinery are due to come on stream in 2014.
In its initial phases, the joint venture will develop a fully integrated industrial complex, including:
? A bauxite mine with an initial capacity of 4,000,000 metric tons per year
? An alumina refinery with an initial capacity of 1,800,000 metric tons per year
? An aluminum smelter with an initial capacity of 740,000 metric tons per year
? A rolling mill, with initial capacity of 380,000 metric tons per yea
? The mill will be the first in the Middle East and will be one of the most technically advanced mills in the world.
First commercial production from smelter and mill is scheduled for 2013.
First production from the mine and refinery is set for 2014.
Alcoa will supply alumina to the smelter in the interim period.
Total capital investment in the joint venture is expected to be around SR40.5 billion ($10.8 billion).
Maaden holds 74.9 percent of the joint venture; Alcoa 25.1 percent with provisions in place to enable an increase to 40 percent.
The second phase, which includes a bauxite mine at Al-Baitha and an alumina refinery at Ras Al-Khair, will cost SR13.445 billion.
The PIF loan will be repaid over a period of 16 years, starting in 2017.
The project, a joint venture between Maaden (74.9 percent) and Alcoa (25.1 percent) is being built in two phases, both of which are now under construction.
The first phase consists of an aluminum smelter and rolling mill, both situated at Ras Al-Khair, which will begin operating in 2013.
The mine and refinery are due to come on stream in 2014.
In its initial phases, the joint venture will develop a fully integrated industrial complex, including:
? A bauxite mine with an initial capacity of 4,000,000 metric tons per year
? An alumina refinery with an initial capacity of 1,800,000 metric tons per year
? An aluminum smelter with an initial capacity of 740,000 metric tons per year
? A rolling mill, with initial capacity of 380,000 metric tons per yea
? The mill will be the first in the Middle East and will be one of the most technically advanced mills in the world.
First commercial production from smelter and mill is scheduled for 2013.
First production from the mine and refinery is set for 2014.
Alcoa will supply alumina to the smelter in the interim period.
Total capital investment in the joint venture is expected to be around SR40.5 billion ($10.8 billion).
Maaden holds 74.9 percent of the joint venture; Alcoa 25.1 percent with provisions in place to enable an increase to 40 percent.
Aluminum Ingot 99.7%min In warehouse Wuxi
Unit:RMB/mt
China primary aluminum producers' operating rate statistics by province by month
Unit: %
