Ma'aden and SABIC finalise historic joint venture
RIYADH, Saudi Arabia, 15 SEP 07: The Saudi Arabian Mining Company, Ma'aden, and SABIC today finalised an historic joint venture agreement to create the world’s largest fully integrated fertiliser production operation.
The two Saudi companies had already signed a Heads of Agreement in March for the SR(21) billion project and SABIC will have a thirty percent (30%) equity share with the seventy percent (70%) balance of ownership being retained by Ma'aden. The joint venture will mine world scale phosphate reserves at Al Jalamid in the north of Saudi Arabia to produce phosphate fertilizers at a new purpose built processing facility at Ras Az Zawr.
The project involves close collaboration between the two leading companies, with Ma'aden furnishing technology and expertise in the phosphate industry and SABIC providing technology and expertise in the field of nitrogen fertilizers in addition to the marketing expertise.
Dr Abdallah Dabbagh, President and CEO of Ma'aden said, “This agreement brings together two great Saudi companies in a venture that will make Saudi Arabia a global leader in the phosphate fertilizer industry. It is an excellent example of how mining combined with downstream expertise can create industrial diversification and increase employment opportunities.”
Approximately 1,400 new long term direct jobs will be created by the project with significant numbers of additional indirect jobs being created in supporting industries.
After mining and initial processing at Al Jalamid, five million tons per year of phosphate rock concentrate will be transported by the new Saudi Railway (SAR) Project railroad to the phosphate complex at Raz Az Zawr to produce di-ammonium phosphate fertilizer (DAP).
Contracts for an ammonia plant, a di-ammonium phosphate granulation plant, a sulphuric acid plant and a phosphoric acid plant at Raz Az Zawr were signed with a number of international companies in earlier this year.
Production will start mid 2010 and when the project becomes fully operational, Ma'aden Phosphate will account for more than 10 percent of the world market for traded di-ammonium phosphate fertiliser.
The DAP produced will be exported to key markets where its use as a fertiliser will be essential to growing crops to feed the world for decades to come.
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.
About SABIC – www.sabic.com
Saudi Basic Industries Corporation (SABIC) is the largest public company in the Middle East, ranked by market capitalization (more than US$ 70 billion), and one of the world’s 10 largest petrochemicals manufacturers. The company is among the world’s market leaders in the production of polyethylene, polypropylene, glycols, methanol, MTBE and fertilizers as well as the fourth largest polymer producer.
Headquartered in Riyadh, SABIC was founded in 1976 when the Saudi Arabian Government decided to use the hydrocarbon gases associated with its oil production as the principal feedstock for production of chemicals, polymers and fertilizers. The Saudi Arabian Government owns 70% of SABIC shares with the remaining 30% held by private investors in Saudi Arabia and other Gulf Cooperation Council countries.
For further information please contact:
Ma'aden Corporate Communications Department
T: +966 55 3063813
For further information please contact: