Saudi Arabian Mining Co. — Capital/Financing Update 2011

Jul 2, 2011

Saudi Arabian Mining Company, Maaden announce that it has received commitment letters from financial institutions and commercial banks to finance Maaden Bauxite and Alumina Company

1211 · 02/07/2011 08:53:53 · Announcement #22094 · View on Saudi Exchange

Saudi Arabian Mining Company, Maaden announce that it has received commitment letters from financial institutions and commercial banks to finance Maaden Bauxite and Alumina Company

Further to the companys announcement on Tadawul on June 22nd 2011, The Saudi Arabian Mining Company, Maaden announced that it has received commitment letters to cover the required $1bn commercial bank financing for the development of Maaden Bauxite and Alumina Companys bauxite mine and alumina refinery. The period of the loans will be 16 years and they will be paid in 21 half yearly installments starting from June 30th, 2017.

The bauxite mine and alumina refinery development, with an approximate cost of US$3.605 bn, comprises the second phase of Ma'aden Alcoa joint venture aluminium project. Sixty percent of the total cost of the second phase, approximately US$2.163bn will be financed as follows: $1bn by the Saudi Arabia Public Investment Fund, $1.003 bn by financial institutions and commercial banks. Further funding of $160m by the Saudi Industrial Development Fund is currently under evaluation.

The remaining US$ 1.442 bn will be financed by the project partners, Maaden and Alcoa on a pro-rata basis. The partners will negotiate with the financial institutions and commercial banks to finalize these agreements in the near future. Further announcements regarding these agreements will be made available in due course.

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