Ma'aden Signs $1bn Financing Agreement for Aluminium Project with PIF
Riyadh, Saudi Arabia – 27th November, 2011 – Ma’aden today announced that its subsidiary, Ma’aden Bauxite and Alumina Company, has signed a $1bn (SR 3.75bn) financing agreement with the Public Investment Fund (PIF) for the second phase of its aluminium project.
Consisting of a bauxite mine at Al Ba’itha and an alumina refinery at Ras Al Khair the second phase of the project will cost US$ 3.585bn (SR 13.445bn). The PIF loan will be repaid over a period of 16 years starting in 2017.
The project, a joint venture between Ma’aden (74.9%) and Alcoa (25.1%) is being built in two phases, both of which are now under construction. The first phase consists of an aluminium smelter and rolling mill, both situated at Ras Al Khair which will begin operating in 2013. The mine and refinery are due to come on stream in 2014.
“The Public Investment Fund concentrates on the development of different economic sectors to achieve the government’s strategic objectives of expanding the Kingdom’s industrial base, diversifying income and creating jobs for Saudi people.” said Mansour Al Mayman, Secretary General of the PIF. “This financing clearly shows the Public Investment Fund’s commitment to supporting sustainable industrial projects in Saudi Arabia.” ,
“The signing of the financing agreement with the Public Investment Fund clearly shows the Government’s commitment to building Saudi Arabia’s mining industry and bringing new technologies and industries to the Kingdom,” commented Engr. Khalid Al Mudaifer, Ma’aden’s President and CEO.
“The impact of this new industry will be highly significant in terms of job creation, regional development and economic diversification. The project team has made excellent progress to date and are dedicated to ensuring the highest standards are applied to every aspect of their work from day to day site safety to long term sustainability considerations.”
He went on to thank the Public Investment Fund’s Board of Directors for their support for the project.
Ma’aden’s aluminium project is the only one in the Middle East with an integral supply of alumina and its rolling mill will be one of the most technologically advanced in the world and the only one in the region capable of producing food grade can sheet.
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.
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