May 08, 2011
Riyadh – Saudi Arabia – 8th May 2011 –The Saudi Arabian Mining Company Ma'aden and Alcoa today announced that Ma'aden Rolling Company, owned 74.9% by Ma'aden and 25.1% by Alcoa, has signed a contract worth $590 million (SR2.2 billion) with Samsung Engineering to engineer, procure and construct (EPC) the aluminium rolling mill plant at Ras Az Zawr in Saudi Arabia. Samsung Engineering will handle the Rolling Mill EPC on a lump-sum turn-key basis with first production scheduled for early 2013 within a project execution period of 32 months.
The rolling mill will be the first food grade can sheet mill in the Middle East. With an initial capacity of 380,000 metric tons per year and designed for significant expansion, it will be one of the most technically advanced mills in the world. It forms part of the fully integrated aluminium industry being developed within Saudi Arabia by the Ma’aden Alcoa joint venture.
The ceremony was attended by Engr. Khalid Al Mudaifer, President and CEO of Ma’aden, Engr. Abdullah Busfar, Chairman of Ma’aden Aluminium Company, Engr Abdulaziz Al Harbi, President of Ma’aden Aluminium Company, and ByungBok Sohn, President and COO, Head of Samsung Engineering for Industrial & Infrastructure.
Engr Al Mudaifer said, “This contract confirms our commitment to creating an integrated aluminium complex that will help make Saudi Arabia a major upstream player in the global aluminium industry. Our strategic partnerships with leading international contractors provide the best in class capabilities and state-of-the-art technologies needed to build a world class facility”.
“The rolling mill will focus on the production of final plates for manufacturing beverage and food cans.” he added.
Engr Busfar said, “The signing marks the latest in a string of milestones that the project has successfully met. We are on our way towards building an industry that will create value for shareholders, numerous different opportunities for Saudi Arabia, Ma’aden and international businesses and thousands of new direct and indirect jobs.”
“This key project will benefit from the know-how of Samsung Engineering’s Industrial & Infrastructure business divisions.” Sohn said at the signing.
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.
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. The company is committed to the best international and local standards in environmental regulations and values its role in Corporate Social Responsibility.
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, safety, environmental and social issues.
About Alcoa
Alcoa (NYSE:AA) is the world's leading producer of primary aluminum, fabricated aluminum and alumina. In addition to inventing the modern-day aluminum industry, Alcoa innovation has been behind major milestones in the aerospace, automotive, packaging, building and construction, commercial transportation, consumer electronics and industrial markets over the past 120 years. Among the solutions Alcoa markets are flat-rolled products, hard alloy extrusions, and forgings, as well as Alcoa® wheels, fastening systems, precision and investment castings, and building systems in addition to its expertise in other light metals such as titanium and nickel-based super alloys. Sustainability is an integral part of Alcoa's operating practices and the product design and engineering it provides to customers. Alcoa has been a member of the Dow Jones Sustainability Index for nine consecutive years and approximately 75 percent of all of the aluminum ever produced since 1888 is still in active use today. Alcoa employs approximately 59,000 people in 31 countries across the world. More information can be found at www.alcoa.com
About the Ma’aden Alcoa joint venture
In its initial phases, the joint venture will develop a fully integrated industrial complex, including:
- A bauxite mine with an initial capacity of 4,000,000 metric tons per year
- An alumina refinery with an initial capacity of 1,800,000 metric tons per year
- An aluminum smelter with an initial capacity of 740,000 metric tons per year
- A rolling mill, with initial capacity of 380,000 metric tons per year. The mill will be the first in the Middle East and will be one of the most technically advanced mills in the world.
Total capital investment in the joint venture is expected to be approximately SAR 40.5 billion ($US 10.8 billion). Ma'aden holds 74.9 percent of the joint venture; Alcoa 25.1 percent with provisions in place to enable an increase to 40 percent.
About Ras Az Zawr
Ras Az Zawr is the location for Ma'aden's minerals industry complex, a 77 square km site, 90km north of Al Jubail on the Arabian Gulf coast of Saudi Arabia. In addition to housing the alumina refinery, aluminum smelter and rolling mill for the Ma'aden Alcoa joint venture aluminum industry, it is also the site for Ma'aden Phosphate Company's integrated chemical and fertilizer facility currently near completion. The phosphate complex consists of a phosphoric acid plant, a sulphuric acid plant, an ammonia plant, a DAP granulation plant, a co-generation plant and desalination plant, as well as related infrastructure. It will process phosphate concentrate brought by rail from Al Jalamid. This will produce about 2.92 million mtpy of granular DAP, plus approximately 400,000 mtpy of excess ammonia and about 200,000 mtpy of excess phosphoric acid. Ras Az Zawr also has 25 square kilometers of land set aside for industrial expansion and downstream industry.