Ma'aden sign construction deal with Al Olayan DESCON for Kingdom's first magnesite plant
Riyadh 17 August 2009: Ma’aden today announced the signing of a SR95 million deal with Al Olayan Descon for the construction of a new mineral processing plant at Madina which will be the first of its kind in Saudi Arabia.
The contract includes mine infrastructure work at the Al-Gazalah Magnesite Deposit 160 kilometres southwest of Hail in addition to construction of the new processing plant at Medina. Work at both sites will begin as soon as mobilisation is complete.
The mine will produce around 140,000 tonnes per year of Magnesium Carbonate, known as Magnesite for the next twenty years. The Magnesite ore will be transported from the mine to the new plant in Medina where processing facilities will include kilns and furnaces for calcining and sintering raw materials at temperatures of up to 2000 degrees centigrade. Products from the plant will include Caustic Calcined Magnesia for uses including agriculture, construction, fuel additive and environmental applications and Dead Burned Magnesia for glass and refractory production although most will be further processed at site to produce added value Monolithic Refractories for lining steel industry furnaces.
“We are delighted to be working with Al Olayan Descon to deliver this important new project, which expands Ma’aden’s growing industrial minerals portfolio.” commented Dr Mansour Nazer, Ma’aden’s Vice President, Planning & Strategy and Corporate Relations. “It demonstrates how the mining industry can generate new domestic lines of supply for industry as well as providing employment and positively contributing to regional development.”
Dr Nazer went on to confirm all that necessary licensing procedures for the project have been concluded and that Ma’aden has also completed extensive environmental and social impact studies in line with the company’s standard procedure for the development of new projects.
Last year Ma’aden started operations as its Kaolin and Bauxite mine near Az Zabirah which currently produces industrial grade bauxite for the cement industry.
Ma'aden was established as a Saudi Arabian joint stock company in March 1997 to facilitate the development of Saudi Arabia’s non-petroleum mineral resources and to diversify the Kingdom’s economy away from the petroleum and petrochemical sectors. Ma’aden is engaged in the development, advancement and improvement of all aspects of the mineral industry, mineral products and by-products and related industries in Saudi Arabia. In July 2008 Ma’aden offered 50% of the company’s shares for subscription in a successful SR 9.25 billion IPO. Ma’aden has progressed towards realizing its vision of building a world class mineral enterprise and its mission of being a profitable, publicly owned, international mining company, while maintaining the utmost concern for human resources, health and safety, environmental and social issues.
Ma'aden is engaged in the development, advancement and improvement of all aspects of the mineral industry, mineral products and by-products and related industries in Saudi Arabia. The company is committed to the best international and local standards in environmental regulations and values its role in Corporate Social Responsibility.
Ma'aden has progressed towards realizing its vision of building a world class mineral enterprise and its mission of being a profitable, publicly owned, international mining company, while maintaining the utmost concern for human resources, health, safety, environmental and social issues.
Ma'aden Corporate Communications Department
T: +966 (0) 874-8045
For further information please contact:
Mr. Bander M. Al-Aida
Section Head, Media Relations
Section Head, Media Relations