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Saudi Arabian Mining Company (Maaden) Announces today Monday 20 Safar 1435H corresponding to 23 December 2013G that it has awarded three EPC contracts, the contracts will be signed at a later date.
First, the contract for building a sulphuric acid plant and a power generation facility, valued at SAR 2,865 million (USD 764 million) was awarded on a lump sum turnkey basis to SNC-Lavalin International Inc. & Sinopec Engineering (Group) Co. Ltd & SNC-Lavalin Arabia LLC (SLA) & Sinopec E&C Middle East Co.,Ltd. The sulphuric acid plant which will consist of three sulphuric acid lines and when completed will have a production capacity of 4.9 million tonnes. The plant will be built at Waad Al Shamal Mineral Industrial City as part of Maadens Waad Al Shamal Phosphate project. The contract includes detailed engineering, procurement, and construction, and will take 35 months, starting from the date of the award, with completion expected in 4Q 2016.
Second, the contract for building a phosphoric acid plant valued at SAR 3,506 million (USD 935 million) was awarded on a lump sum turnkey basis to Hanwha Engineering & Construction Co. Ltd & Hanwha Saudi Contracting Co. Ltd The phosphoric acid plant which will consist of three phosphoric acid lines when completed will have a production capacity of 1.5 million tonnes. The plant will be built at Waad Al Shamal Mineral Industrial City as part of Maadens Waad Al Shamal Phosphate project. The contract includes detailed engineering, procurement, and construction and it will take 33 months, starting from the date of the award, with completion expected in 4Q 2016.
Third, the contract for building an ore beneficiation plant valued at SAR 2,089 million (USD 557 million was awarded on a lump sum turnkey basis to China Huanqiu Contracting & Engineering Corp & HQC Middle East Co.. The ore beneficiation plant when completed will have a production capacity of 5.3 million tonnes and will be built at Waad Al Shamal Mineral Industrial City as part of Maadens Waad Al Shamal Phosphate project. The contract includes detailed engineering, procurement, and construction and will take 32 months, starting from the date of the award, with completion expected in 3Q 2016.
The project partners, together with project financial adviser, are currently finalising finance for the project and expect to secure commitments from financial institutions during December 2013. It is expected that funding from these institutions will be available in 2014 and prior to that time the costs of implementing the project will be met from funds provided by the partners in proportion to their shareholding.
Saudi Arabian Mining Company (Maaden), The Mosaic Company and Saudi Basic Industries Corporation (SABIC) will own 60%, 25% and 15% of the joint venture developing Waad Al Shamal Phosphate project respectively.
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