Maaden awards contract to construct ammonia plant

The Saudi Arabian Mining Company (Ma'aden) announces today, 29/08/1434H corresponding to 08/07/2013G that it has awarded a contract for building an ammonia plant valued at SAR 3.09 billion (USD 825 million) to Daelim Industrial Co. Ltd (OOK) & Daelim Saudi Arabia Co. Ltd (IK). The ammonia plant which will have the production capacity of 1.1 million tonnes, will be built at Ras Al Khair as part of Ma'aden's Waad Al Shamal Phosphate project. Completion is expected in late 2016. The contract includes engineering, procurement and construction for the duration of 39 months, starting from the date of the award. The project partners, together with project financial advisor HSBC, expect to sign the financing of the complex from financial institutions by Q4 2013. Ma'aden and its partners intend to fund the project until the financing closure is secured. The ammonia plant will be the first out of several processing plants which Ma'aden's Waad Al Shamal Phosphate project will construct to develop a fully integrated phosphate production complex at the King Abdulah Project for the Development of Waad Al Shamal Mineral Industrial City, and at Ras Al Khair Mineral Industrial City. The investment cost of the entire Phosphate complex is estimated at SAR 26 billion, of which approximately SAR 21 billion will be invested in Waad Al Shamal Mineral Industrial City. Ma'aden will announce further details in due course