Phosphate

MPC exploits the phosphate deposit at Al Jalamid in the North of Saudi Arabia and utilises local natural gas and sulphur resources to manufacture Diammonium Phosphate (DAP) at processing facilities at Ras Al Khair on the Arabian Gulf coast. These facilities have the flexibility to also produce Monammonium Phosphate (MAP). The DAP produced by MPC is sold primarily into the international markets. Surplus ammonia from the operation is exported or sold domestically. MPC commenced initial production of DAP on the 17th June 2011.

The Al Jalamid site comprises the phosphate mine, beneficiation plant and supporting infrastructure and encompasses an area of approx. 50 sq. km. Mine production is around 11.6 Mtpy of ore and the beneficiation facilities can produce an estimated 5 Mtpy of flotation concentrate on a dry basis. Ma'aden's measured phosphate resources at Al Jalamid stand at 534 Mt. Substantial investment has also been made in industrial infrastructure at Al Jalamid including a power plant, potable water production, treatment and distribution facilities, roads and telecommunications supports the mining and beneficiation operations. The phosphate concentrate is transported by rail from Al Jalamid to Ras Al Khair for processing.

Ras Al Khair is 90km north of Jubail in Saudi Arabia's Eastern Province and is the location of MPC's integrated chemical and fertilizer facility and related infrastructure. The phosphate concentrate transported by rail from Al Jalamid is processed in the fertilizer production facility consisting of a phosphoric acid plant, a sulphuric acid plant, an ammonia plant, a DAP granulation plant, a co-generation and desalination plant, as well as other infrastructure.

At full capacity MPC will produce approximately 3 Mtpy of granular DAP, plus a surplus of approximately 0.4 Mtpy of excess ammonia.

Ma'aden is studying a significant expansion of its phosphate activities involving the exploitation of a second major phosphate resource in the north of Saudi Arabia to supply merchant grade phosphoric acid to the fertilizer, food and animal feed industries.

A feasibility study is underway on the project which would mine the Al Khabra deposit in the Umm Wual area located 40 kilometres northeast of Turaif. The project envisages an open pit mine and beneficiation process adding close to 1.5 million P2O5 tonnes annually to Ma'aden's planned phosphate capacity to be marketed locally and internationally by Ma'aden.

The project would mainly use existing port, rail and infrastructure developments put in place by the Kingdom's government to deliver regional development through the expansion of key industries. The feasibility study currently underway will evaluate the viability of the project to supply highly demanded phosphate intermediate products to augment Ma'aden's phosphate product mix.

The projects help fulfill Ma'aden's commitment to develop the mineral wealth of the kingdom and become a catalyst for downstream industries

The project is based on measured resources at Al Khabra mining license which stand at 236 million metric tons grading at 17% to 19.6% P2O5. The deposit has very low metal content, ensuring that the resulting phosphoric acid will be of "the highest quality," suitable for use in the food and feed industries. The Umm Wual area contains further JORC compliant indicated resources of 450 million metric tons as well as significant further potential resources which Ma'aden is continuing exploration activities in the area to expand that resource.