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Council of Ministers Approves Promise of the North City For Mining Industries

Feb 20, 2012

Riyadh 20th February 2012: Engr Abdullah Saif Al Saif, Chairman of Ma’aden, expressed his happiness at the Cabinet’s approval for the establishment of Promise of the North City for Mining Industries in northern Saudi Arabia. He said that this giant project will be one of the Kingdom’s biggest achievements in the mining industry which will create job opportunities, sustainable regional development and increased value for Ma’aden’s shareholders. Engr Al Saif added that Ma’aden already has the proven capabilities to implement huge mining and downstream projects.

Engr Khalid Al Mudaifer, President and CEO of Ma’aden, expressed his own excitement over the Cabinet’s approval and thanked the Custodian of the Two Holy Mosques, King Abdullah Bin Abdulaziz, and His Royal Highness Prince Naif Bin Abdulaziz, Crown Prince Deputy Premier and Minister of Interior, for their support of the Kingdom’s mining sector, helping it succeed in regional development and the creation of job opportunities.

Engr Al Mudaifer emphasised that Ma’aden is part and parcel of the social and economic fabric of the Kingdom. While the company achieves balanced growth by investing in profitable projects, it also contributes to creating quality job opportunities within the areas it operates, especially those near its operations.

Engr Al Mudaifer continued: “The availability of the phosphate deposits in the Northern Saudi Arabia in economic quantities and near new gas discoveries and a railway infrastructure paves the way for the establishment of a mining industries city in the north based on phosphate manufacturing and downstream industries. “ He added that the historic decision to initiate this project will achieve the leadership’s vision of developing remote areas and opening new job opportunities for Saudi youth.

Engr Al Mudaifer added that Ma’aden is working to complete engineering studies before investing around SR26 billion to construct a phosphate fertilizer industry complex to transform phosphate ore into a number of basic and specialised industrial materials. He emphasised the importance of social responsibility at Ma’aden including the development of areas around its project to elevate the standards of living for local people and through vocational training so that they become leaders of those projects in the future.

He indicated that the basic and downstream industries at Promise of the North city will create over 20 downstream investment opportunities for the private sector. Ma’aden’s phosphate project and the downstream opportunities will create around 2,700 jobs to be added to 22,000 jobs in the Promise of the North City for Mining Industries, accommodating large numbers of young Saudis in the northern areas.

Engr Al Mudaifer stated that Ma’aden will allocate SR21 billion of its investment to cover phosphate mining and processing and to establish seven large world-class plants and associated facilities. The total production capacity of these plants will be 16 million tonnes per year and will include phosphate concentrate, sulphuric acid, phosphoric acid, dicalcium phosphate and monocalcium phosphate used in manufacturing animal feed, concentrated phosphoric acid used in food industries, and trisodium polyphosphate used in manufacturing detergents and for industrial purposes.

Engr Al Mudaifer said that other new plants to produce ammonia and phosphate-based fertilizers complementing the industries at Promise of the North will be constructed at Ras Al Khair in the Eastern Province to be near port facilities.

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