Our vision is to maximize the contribution of the mining industry
to the Kingdom of Saudi Arabia through spend on Saudi
components within labor, goods, services, assets & technology.
We are achieving this vision by focusing on five strategic
objectives.
Our vision is to maximize the contribution of the mining industry to the Kingdom of Saudi Arabia through spend on Saudi components within labor, goods, services, assets & technology. We are achieving this vision by focusing on five strategic objectives.
Saudi Employment
Maximise employment opportunities for KSA nationals
Industry Champion
Drive Local Content throughout the mining industry supply chain
Remote Region
Maximise economic opportunities for communities in remote regions
Local SMEs
Maximise opportunities for local SMEs
Local Businesses
Maximise participation of local businesses in our supply chain
Ma’aden has made excellent progress in 2021. Of our total procurement spend, SAR 13.6bn 72% was placed with companies in KSA. This led to a Local Content contribution of SAR 11.2bn, which will boost Saudi national GDP by SAR 19bn. We estimate that this will lead to the creation of over 25,000 jobs for Saudi nationals in the mining industry supply chain.
As we move forward, Ma’aden is working with investors to localize the production of some of the key goods and services that Ma’aden buys to operate and develop new businesses and industries using our products. We signed seven new agreements, covering key commodities such as calcined petroleum coke, catalysts, and aluminium fluoride that collectively will create over 300 new jobs for Saudi nationals, and contribute an additional 1.45bn SAR to Saudi national GDP in the future. We also have a pipeline of opportunities we are working on with investors that have the potential to generate a further 1,400 Saudi jobs and a GDP contribution of 1.2bn SAR.
We signed seven new agreements, covering key commodities such as calcined petroleum coke, catalysts, and aluminium fluoride that collectively will create over 300 new jobs for Saudi nationals, and contribute an additional
We also have a pipeline of opportunities we are working on with investors that have the potential to generate a further 1,400 Saudi jobs and a GDP
to Saudi national GDP in the future.
to Saudi national GDP in the future.
Ma’aden is working with a local investor on the development of an onsite air separation unit to produce liquid nitrogen to directly supply Ma’aden’s phosphate operations in Ras Al Khair.
Ma’aden has signed a supply agreement with a local investor for the supply of calcined petroleum coke (CPC) for use in its aluminum smelter in Ras Al Khair.
Ma’aden is currently working with a local investor on the development of a manufacturing facility to produce food and pharmaceutical grade aluminium foil, and aluminium cladding.
Ma’aden is working with several local suppliers of recycled aluminium scrap to localize the supply of scrap metals to Ma’aden aluminium operations.
Ma’aden is working with a local investor working in partnership with an overseas investor, to develop a geochemical analytical services laboratory in the Kingdom of Saudi Arabia. This will significantly increase the laboratory services capability and capacity in KSA and could potentially provide laboratory analytical services to Ma’aden, and other mining investors and exploration companies.
In 2021, Ma'aden spent
on goods and services to support its activities.
A key element of our Local Content program is to drive the localization of the production and delivery of these goods and services. We have identified 82 categories where Ma’aden’s current spend provides a significant opportunity to increase Local Content adding value to the Kingdom.
| Aluminium Scrap | Aluminum Fluoride | Antiscalants |
| Petroleum Coke | Alloys | Catalysts |
| Pitch | Coating Oil | Flocculants |
| Fatty Acid | Colouring Agent for DAP | Caustic Soda |
| Explosives | Limestone & Hydrated Lime | Refractory Bricks |
| Defoamer | Metal Products | Aluminum coating |
| Magnesium | Potash | |
| Sodium Cyanide | Manganese Based Alloys |
| Power Transmission | Generators Renta | Safety Suppliers - PPE |
| Pipes and Fittings | Valves | Heavy Equipment Spares |
| Electrical & instrumentation | Pumps | Crushers, Breakers and Grinders |
| Conveyors | Compressors Rental & Maintenance | Tires and tire tubes |
| Hardware & Fasteners | Building & Construction Machinery | Nozzles |
| Filtration | Paints & Primers | Switches |
| Hydraulics | Hose | Straps |
| Fabricated Structural Assemblies | Tube | Cathode sealing bar |
| Bearing | Flange | Dewatering equipment |
| Seals | Computer Equipment & Accessories | Motor |
| Lubricant | Washers | Gaskets |
| Minin Operation | Facilities Management | Chartered Bus Service |
| Manpower supply | Drilling Services | Professional Engineering |
| Tanker truck transport | Management Consultancy | Refractory Services |
| Freight Forwarding | Conveyor Maintenance | Education & Training |
| General Maintenance | Catering Services | Security Management & Fire Safety |
| Ocean Freight | Waste Management | IT Consulting |
| Scaffold Services | Mobile Equipment | Hydro letting Services |
| Transport from mines | Event Management | Catalyst Services |
| Laboratory Services | Manufacturing Services | Gypsum Stacking |
Total Spend (SAR)
LC Contributions (SAR)
Saudi job creation
GDP Contributions (SAR)
These categories include goods and services purchased from overseas and from businesses based in KSA. In all instances, we believe an opportunity exists to increase the level of Local Content in their production and delivery.
We currently have investors registered and actively working on opportunities covering the 21 categories highlighted above. Cumulatively, these opportunities have the potential to increase Local Content by 440m SAR, deliver an additional 1.2bn annually to the national GDP, and create over 580 new jobs.
In 2021, we have increased our focus on Downstream Local Content opportunities. These are opportunities to build new businesses and create new jobs in KSA based on the outputs of Ma’aden’s production. While much of Ma’aden’s production brings valuable export revenues to the Kingdom our products also offer the opportunity for investors to create added value to the Kingdom’s manufacturing sector.
We have identified a set of 36 priority Downstream investment opportunities across our aluminium, phosphate, and industrial minerals business.
| Aluminium Foil | Aluminium Slugs/Circle | Poly-Aluminum Chloride (PAC) |
| Aluminium Powder | Aluminium Wheels & Castings | Aluminum Alloy Drill Pipe |
| Aluminium Composite Panels | Aluminum Caps & Closures | Aluminum Blinds and Shades |
| Aluminium Extrusions | Aluminum Conductors | Aluminum Notch Bars |
| Aluminium Forgings | Aluminum Sulphate | |
| Aluminium Cabkes & Welding Wires | Aluminum Tubes/Pipes |
| Power Aluminium Fluoride | Dicalcium Phosphate | Sodium Fluorosilicate |
| Sulfuric Acid | Fertilizer grade Ammonium Nitrate | Low-Carbon Cement Clinker |
| Technical Grade Ammonium Nitrate | Silicon Dioxide | Monosodium Phosphate (Msp) |
| Ammonium Sulfate | Crystalline Map | |
| Monocalcium Phosphate (Mcp) | Monopotassium Phosphate (Mkp) |
| Calcined Bauxite | Magnesia Carbon Bricks | Basic Monolithic Refractories |
| Ceramic Proppant | Metakaolin | Brown Sintered Alumina |
A structured program exists to register investors at all stages from feasibility to production.
We currently have investors registered and actively working on opportunities covering 8 downstream applications highlighted above.
Cumulatively these opportunities have the potential to increase Local Content by 1,3bn SAR, deliver an additional 4.3bn annually to the national GDP, and create over
Ma’aden is a major purchaser of goods and services from other businesses in the Kingdom. The scale of our procurement activities provides a key lever to maximize impact on the wider KSA economy, by supporting Saudi-based businesses.
Local bidders, and particularly those that can demonstrate high levels of Local Content,
are prioritized for inclusion in bidder lists. Bid documents highlight targets for key Local Content metrics and bid responses must include the bidders’ commitments to meet or exceed those targets. All major tenders include Local Content in the evaluation of bid responses, which becomes a factor in the decision to award the contract. We also proactively seek suppliers who can support our strategic objective of providing economic and job creation opportunities for the communities in Remote Regions where we operate.
1,606m
1,606m
Total Supply Chain Spend:
7,035m
1,606m
1,606m
Total Supply Chain Spend:
10,126m
1,606m
1,606m
Total Supply Chain Spend:
13,583m
Our Procurement Index specifically measures our spend on physical goods that is placed with local manufacturers. In 2021 56% of our spend on goods was placed with local manufacturers.
2,382m
3,140m
Total Goods Spend:
5,522m
2,059m
4,093m
Total Goods Spend:
4,093m
3,965m
4,711m
Total Goods Spend:
8,406m
In 2021 we worked with our largest and most significant on-site contractors and service providers to understand the roles in our extended workforce and the current levels of Saudisation. This helps us to identify the roles and opportunities we could target to convert from ex-pat to national jobs. This study identified a series of initiatives working with contractors, service providers, government agencies, and training providers to help create new opportunities and jobs for Saudi nationals that are attractive and that will provide them with long-term opportunities for growth and development in the mining industry. We will be working on these initiatives throughout 2022 to boost levels of Saudisation across our supply chain.
