Ma’aden Signs Financing Agreement With SIDF For Its Caustic Soda And Ethylene Dichloride Project
Riyadh, 30th November 2011: The Saudi Arabian Mining Company, Ma’aden today announced that its subsidiary, Sahara and Ma’aden Petrochemicals Company (SAMAPCO) has signed a SR 900 million (USD 240 million) financing agreement with the Saudi Industrial Development Fund for its caustic soda and ethylene dichloride project.
The load will be repaid in 13 semiannual non-equal installments ranging between 30 and 90 million Saudi Riyals with repayment starting on 15/08/1436 H and ending on 15/08/1442 H.
The production capacity of the project would amount to 250,000 tonnes per annum of concentrated caustic soda and 300,000 tonnes per annum of ethylene dichloride. The project will create approximately 200 job opportunities which could increase according to the gradual expansion in the Company's projects.
The caustic soda and ethylene dichloride project is a 50:50% joint venture between Ma’aden and Sahara Petrochemicals Company. The project will be completed by the end of 2012.
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.
First commercial production from smelter and mill is scheduled for 2013. First production from the mine and refinery is set for 2014. Alcoa will supply alumina to the smelter in the interim period.
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.
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