Ma’aden signs major Memorandums of Understanding (MOU) with “Alcoa” & “MOSAIC” at the Saudi-U.S. CEO Forum in Riyadh
Riyadh, 20 May 2017: Two landmark MOUs were signed today to tap Saudi Arabia’s mining sector’s significant potential, between Saudi Arabian Mining Company Ma’aden and its partners U.S.-based companies Alcoa and Mosaic. The major Memorandums of Understanding (MOU), signed at the inaugural Saudi-U.S. CEO Forum in Riyadh, provide fresh impetus to the mining sector in the Kingdom, identified as having strong growth prospects in Saudi Vision 2030, the national strategic blueprint for economic diversification.
The first MOU, Ma’aden and Alcoa Corporation announced today the signing of a Memorandum of Understanding (MOU) to consider further development for the existing partnership. The signing took place at the Saudi-US CEO Forum in Riyadh. Under the MOU, Ma’aden and Alcoa will assess the feasibility of a potential expansion of smelting capacity in the Kingdom of Saudi Arabia. Ma’aden and Alcoa jointly developed the first and only fully integrated high efficiency aluminum production complex located in Ras Al-Khair Industrial City.
Since formed by the partners in 2009, the Ma’aden-Alcoa joint venture complex has made a contribution of approximately USD 4 billion to the Kingdom of Saudi Arabia’s GDP. The joint venture supports 3,500 direct jobs and 12,000 indirect jobs. If the expansion were to proceed, primary aluminum capacity could be increased by 600,000 metric tons per year and result in over 3,000 high quality direct and indirect jobs. Alcoa holds a 25.1% investment in the Ma’aden-Alcoa joint
The second MOU, “With the nearing completion of construction of the Ma'aden Wa'ad Al Shammal Phosphate project, Ma’aden and The Mosaic Company announced today the signing of a Memorandum of Understanding (MOU) to further highlight and commemorate the partnership between the two mining and fertilizer business leaders. The MOU contemplates several areas of potential collaboration in the phosphate business in the Kingdom of Saudi Arabia. Mosaic, Ma’aden and their partner SABIC have already invested about USD 8 billion in developing the project.
Separately, further to its previous announcement, Ma’aden is advancing a third project for the manufacture of phosphate fertilizers in the Kingdom. The project, which is anticipated to be implemented in phases starting production early in the next decade, envisions adding up to an additional 3 million tons per year of production capacity with a total investment estimated to be USD 6.4 billion. The project is subject to the completion of definitive studies and obtaining necessary Board approvals and consents. Estimated benefits from the project include a GDP contribution of about USD 2.4 billion and total employment of 7,000, many of which would be high quality jobs.”
For further information please contact: