Our People and Our Systems
Ma’aden: Protecting People, Places, and Planet
Ma'aden Phosphate Complex - Wa'ad Al Shamal Minerals Industrial City
Ma’aden phosphates are critical for food security all over the world.
We are committed to ensuring global food security and empowering farmers by providing high-quality products that improve crop quality and yield. Ma’aden’s long-term strategy was shaped with very clear goals which have led to sustainable growth in sales and penetration of all major markets. This continued in 2021.
We are now firmly established as one of the world’s largest producers of phosphates - responsible for 18% of global annual trade. Ma’aden’s achievements are backed by a tailored regional strategy with places customer needs at the heart of everything that we do.
Ma'aden is one of the world’s largest producers of
phosphates, responsible for
of global annual trade
This growth has been underpinned by the high quality of our fertilizer products. The natural resources available in Saudi Arabia mean that Ma’aden fertilizer products are some of the purest available on the market, with very low levels of heavy metals. This has helped Ma’aden become a preferred supplier in many key agricultural markets.
As an integrated producer and supplier, we lie in the first quadrant of the global Ammonia and Phosphate cost curve, giving us a competitive advantage over many competitors.
We also enjoy a locational advantage due to our geographical position in Saudi Arabia. This provides us with access to key markets and allows us to benefit from the quality of the Kingdom’s infrastructure.
Our location and geographical proximity to key demand centers provide us with a competitive advantage in the phosphate market. Shorter delivery times often make us the preferred choice in South Asian and East African markets. Our logistics capabilities have been continuously improved over the years leading to better on-time delivery and enhanced customer satisfaction. Supply chain management remains a key pillar of our business success and Ma’aden has accordingly invested in developing world-class logistical capacity.
Phosphate prices soared throughout 2021 driven by several market factors including strong farmer economics in the West, export restrictions in China and Russia, and lower than usual stocks in the east In the first half of 2021, prices increased consistently driven by supply shortage in the US resulting from the imposition of countervailing duties on Moroccan and Russian fertilizers. Strong farmer economics in the West allowed the price increase across the Americas region. Lower than usual stocks in the Indian subcontinent and an increase in fertilizer subsidy in India led to steady buying in the region and additional strengthened the market.
Phosphate fertilizer price increase slowed globally and started showing signs of softness in the Americas region during August 2021 due to limited seasonal demand and growing availability.
However, several significant market developments occurred during Sep-Oct 2021 which led to renewed price stability and growth across all markets:
China imposed restrictions on fertilizer export to ensure adequate domestic fertilizer supplies.
Reduced production of ~500 KT at Mosaic facility in the US as a result of hurricane damage.
A massive increase in natural gas prices in the European region as a result of a decrease in supply from Russia.
Indian government revised the subsidy for a second time in 2021 in October to encourage fertilizer imports.
Phosphates remain a key element of our business portfolio and we will continue to invest in and grow our fertilizer business.
Our new state-of-the-art facility (Phosphate 3 project) at Wa’ad Al Shamal Industrial Mineral City and Ras Alkhair industrial city is currently under construction and our new ammonia plant is under commissioning. With this new facility, our phosphate business is projected to maintain a strong global position as the second largest exporter globally, reinforcing our role as a cornerstone of Saudi Arabia’s contribution to global food security.
Ma’aden’s Phosphate 3 project will contribute a total of 3 million tons per year of additional fertilizer products, to help meet growing global demand.
Over the past decade, our investments in the production and supply of phosphate in Saudi Arabia have contributed significantly to the national economy, creating thousands of jobs, and producing millions of tons of products that have helped cultivate diverse crops around the world. With Phosphate 3, Ma’aden is continuing its journey of developing the north region around its phosphate reserves and contributing to community development, job creation, and the local economy – enhancing the quality of life for local people through investment, education, and health initiatives.
We continue to develop new product lines for existing markets and seek out opportunities to support customers in developing markets.
Our phosphate and ammonia business growth were supported by expansion into existing new territories and markets with market share increasing to 27% in India, 10% in Brazil, 40% in Bangladesh, and 48% in East Africa . This was supported by our 2019 acquisition of Meridian, an established supplier of fertilizer products in African markets. Through this acquisition, we have performed particularly strongly in those markets, where we have witnessed phosphate sales volume more than doubling since 2019.
in East Africa
This year, we have also increased our focus on the supply of specialty phosphate products (NPKs/NPSs). These accounted for 14% of our fertilizer sales in 2021. We intend to further strengthen our specialty products portfolio and are confident that this segment will account for a significant portion of our sales as we move forward.
On the ammonia side, we maintained our strategic position and strengthened our position in the Far East ammonia markets, by further penetrating and increasing market share. However, in 2021 we have been affected by the ammonia shutdown in Ma’aden Phosphate company which resulted in a decrease in our ammonia prod
Alongside this growth, we will be investing in improving the infrastructure to strengthen connectivity between our mines and processing plants, which will drive further efficiencies and increase shareholder and customer value.