Jun 18, 2011
Riyadh – Saudi Arabia – 18th June 2011 –Ma’aden today announced that Ma’aden Phosphate Company (MPC) yesterday started initial production from the first production lines of Sulphuric Acid and Phosphoric Acid for captive use and Diammonium Phosphate Fertilizer (DAP), the final product, at its production complex in Ras Az Zawr. The production rate will be increased as other lines commence operation.
MPC, a $5.5 billion joint venture between Ma’aden (70%) and SABIC (30%), remains on course to be completed on budget. When at full production MPC will produce approximately 3 million tones per year of DAP, which according to the company’s estimates represents more than 10% of current global demand. SABIC will market 77% of production with the remainder marketed by Ma’aden.
“This is the first of Ma’aden’s mega projects to become operational and when in full commercial production will considerably enhance Ma’aden’s revenue profile.” commented Engr. Khalid Al Mudaifer, President and CEO of Ma’aden. “The successful development of MPC proves how such integrated minerals based projects can create value for shareholders, sustainable employment opportunities and regional development in the Kingdom.” He added “This complex operation is the largest fully integrated phosphate fertilizer project in the word and will place the Kingdom among the world leaders of the phosphate industry.”
He continued, “We are all proud that in addition to building this world scale operation in full compliance with the highest health, safety and environmental standards, an outstanding organization has been built with best in class processes and systems supported by state of the art computerized management systems. Of MPC’s 1200 employees more than 60% in operations and 70% in management are Saudi. More than 350 Saudi high school leavers and fresh graduates have been trained and developed to operate this complex. The production of the Kingdom’s first diammonium phosphate fertilizer is the realization of years of dedication and hard work by the all the teams involved.”
He went on to praise the government’s support for the Kingdom’s mining industry through the Ministry of Petroleum and Mineral Resources, Public Investment Fund and Saudi Arabian Railways and the inclusion of the mining sector’s needs in national infrastructure development plans.
MPC includes a phosphate mine and beneficiation plant at Al Jalamid in the north of Saudi Arabia and a processing complex at Ras Az Zawr on the Kingdom’s East coast consisting of four plants producing sulphuric acid, ammonia, phosphoric acid and, DAP respectively. The two sites are linked by a new 1,500 kilometer railroad and supported by extensive infrastructure including a new port at Ras Az Zawr.
Ma’aden has five operating gold mines in Saudi Arabia, two further industrial minerals operations and is constructing a $10.8 billion integrated Aluminium joint venture with Alcoa. The company has over 11 million ounces of gold resources in its licence areas and is carrying out extensive exploration in the Kingdom to grow its existing projects and expand its minerals portfolio.
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.