Phosphate is one of the most significant products of Ma’aden as it is made naturally of phosphorus element. It is one of three main nutrition elements in the photosynthesis and is key element of the growth of agricultural crops.
According to the Food and Agriculture Organization (FAO) of the United Nations, the global food production needs to rise by 70%, and to be doubled in developing countries, so as to meet the anticipated needs of the world population, which will reach population of 9 billion people in 2050. Thus, there will still be a need to raise the productivity of phosphate fertilizers to meet this growing demand for food.
Ma’aden produces ammonium phosphate, which is recently widely used in agricultural field, Diammonium Phosphate (DAP), Monoammonium Phosphate (MAP). Ma’aden plans to introduce new phosphate compounds to become one of the leading suppliers of phosphate fertilizer companies in the world.
KSA is rich of all raw materials and other resources available to produce and supply phosphate fertilizers to the fastest growing countries in the world, all of which are close to the Kingdom.
Ma’aden continues its growth in the area of phosphate, based on two of the largest companies in the world, Ma'aden Phosphate Company, which was established in partnership with SABIC and Ma'aden Wa’ad Al Shamal Phosphate, which was created in partnership with both SABIC and the US based Mosaic, which is one of the largest producer of phosphate fertilizer in the world.
Ma'aden Phosphate Company (MPC)
With an investment of USD 5.5 Billion (SAR 21 Billion), MPC is a joint venture between Maaden and Saudi Basic Industries Corporation (SABIC), who share 70% and 30% respectively, with total production capacity of 3 Million TPA of DAP, MAP, and NP's. Each year, Maaden markets about 70% of its production from two major sites; Al-Jalamid, north of the Kingdom, where lies the phosphate mine in addition to an ore beneficiation plant; and Ras Al-Khair (RAK) site in the Eastern Province, which includes an integrated plant for the production of fertilizers and chemicals.
The mine produces about 11.6 Million TPA of phosphate ore, which undergoes the beneficiation process in the plant in order to produce nearly 5 Million TPA of beneficiated ore. MPC sought for investment in Al-Jalamid mine site, in terms of infrastructure, by constructing a power plant, potable water production and treatment facilities, a telecommunication network as well as a transportation network so as to facilitate exploration and production operations.
Phosphate concentrates are transported from Jalamid to RAK by rail for the production of phosphate fertilizers thru a number of facilities, including a phosphoric acid plant, a sulfuric acid plant, an ammonia plant, a Diammonium phosphate plant (DAP) and a desalination plant.
Based on the business relations of its founders (Maaden and SABIC), as well as the supply chain, markets and materials networks that cover the continents, MPC is growing as global company and playing an active role in this journey.
In February 2012, another huge project of Ma’aden, i.e. phosphate project in Wa’ad Al-Shamal for mining industries was announced.
This project, of which investments reach USD 7.5 billion (SAR 28 billion), include several international specification based plants and their facilities so that it became the largest phosphate worldwide. The total production capacity of these plants will be around 16 million TPA. Ma’aden markets 60% of its production, of which 3 million tons asend use products that include ammonium phosphate fertilizer and complex phosphate fertilizer, as well as 440 thousand tons of manufacturing products, including purified phosphoric acid used in food industries, sodium tripolyphosphate used in manufacturing detergents and for industrial purposes and dicalcium and monocalcium phosphate used in animal feed.
It comprises of two industrial sites; i.e. Wa’ad Al-Shamal Industrial City in Tareef province and Ras Al-Khair Industrial City in the Eastern Region. Both sites will be linked by the north-south railway. The new facility, by the end of 2016, will be a KSA pride and will contribute in raising the status of Ma’aden among higher phosphate producers in international markets.
Today, Ma’aden has a strong position that qualify it meet the global demand of phosphate fertilizers. It is also enabledto achieve its goal of being one of the highest producers and exporters in this sector and an effective strength in the global market that is supported by the natural phosphate sources in north KSA. It will take advantage of the local resources of sulfur and natural gas, as well as the close distance to the main and promising markets in South Asia and East Africa. Furthermore, Ma’aden explores new phosphate, then treat it to be phosphate fertilizers.