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About Image

Chinese and Korean firms win major plant contracts for Ma'aden Mega Project

Dec 17, 2007

RIYADH, Saudi Arabia, 17 DEC 07: Ma'aden has today signed the final two major plant contracts for it’s mega phosphate project. The contracts are for the power & desalination plant as well as the beneficiation plant of what will be the world’s largest fully integrated phosphate fertilizer complex.

The power and desalination plant which will be located at the phosphate processing complex at Ras Az Zawr will be undertaken by Hanwha Engineering and Construction Corporation (Hanwah) of Korea. The value of the contract is US$280 million.

The beneficiation plant will be located at the phosphate mine site in Al Jalamid in the north of the Kingdom. The US$350 million contract was won by Guizhou Hongfu Industry and Commerce Development Co. Ltd. (Hongfu) of China.

Speaking at the signing ceremony for the two contracts, Ma'aden President and CEO, Dr Abdallah Dabbagh said, “As with the other major contracts for the phosphate project, we have scoured the globe for the right partners with the right experience and expertise. Both Hanwah and Hongfu have met our specific criteria and I am very pleased to welcome them both to this monumental project.

“The signing of these two contracts means now that all major plant contracts have been agreed. Work at the Ras Az Zawr site has already begun with the driving of piles for the sulphuric acid plant and started basic construction of foundations. This project is now very much a reality and on track to deliver the first phosphate fertilizer to waiting markets to feed the world in the last quarter of 2010.”

Power & Desalination Plant

Site mobilisation for the power and desalination plant will commence in January 2008 with construction stating in May of that year. The plant is expected to be completed and fully operational by the middle of 2010.

The power plant consists of 2 x 66% Siemens Condensing Steam Turbines & Generators, with an output of 126.76MW base load and 146.53MW peak load. The phosphate project is expected to be a net exporter to the grid of approximately 10MW, depending on final load examination.

The desalination plant will utilise Entropie Multi Effect Distillation (MED) and can process up to 40,000 cubic metres per day. The plant will also include storage facilities for desalinated, process and potable water.

Beneficiation Plant

Construction on the beneficiation plant at Al Jalamid will commence in April 2008, with completion expected by May 2010.

The beneficiation plant is required to remove calcium and magnesium carbonates from the phosphate deposit run-of-mine ore to produce 4.63 MTPY dry phosphate concentrate suitable for use in the manufacture of phosphoric acid.

The beneficiation plant physical limits are comprehensive, starting with the primary crusher located in the mine area, an overland conveyor, run of mill (ROM) storage, crushing and milling circuit, de-sliming, conditioning, flotation, dewatering, filtration, wet concentrate storage, concentrate drying, and rail car load-out, pumping plant tailings to the tailings dam, as well as a central control building and fuel & chemical reagent storage tanks.

The Scope of Work includes the provision of all professional and technical services, labour, equipment, facilities and materials and all other functional services necessary and required to engineer, procure, construct, commission and performance test the beneficiation plant facilities on a lump sum turn key basis, as defined in the contract.

About Ma’aden

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.

For further information please contact:

Aqeel Alonazi
Ma'aden Corporate Communications Department

T: +966 55 3063813
E: alonaziam@maaden.com.sa

For further information please contact:

Mr. Saleh Al Shubaili
Manager, External Communication and Branding

E: media@maaden.com.sa

MEDIA CONTACTS

Mr. Saleh Al Shubaili

Manager, External Communication and Branding

media@maaden.com.sa

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