Saudi Arabian Mining Co. — Capital/Financing Update 2011

May 8, 2011

Saudi Arabian Mining Company ( Ma'aden ) announces the signing of the joint venture agreement with Sahara Petrochemicals Company

1211 · 08/05/2011 16:43:58 · Announcement #21701 · View on Saudi Exchange

Saudi Arabian Mining Company ( Ma'aden ) announces the signing of the joint venture agreement with Sahara Petrochemicals Company

Further to the previous announcement published on Tadawul website on 30/11/2010, Saudi Arabian Mining Company (Ma'aden) announces that on Sunday 08/05/2011 the following two agreements were signed between Ma'aden and Sahara Petrochemicals Company:

First: the joint venture agreement between Ma'aden and Sahara Petrochemicals to establish the caustic soda and ethylene dichloride complex at the Sahara Petrochemicals complex in Jubail Industrial City. The estimated investment is about USD 750 million (SR2.8 billion).

Second: the agreement to supply the entire production of concentrated caustic soda to Ma'aden for use in its alumina refinery project at Ras Az Zawr.

Details related to the project financing will be announced in due time.

The production capacity of the project would amount to 250,000 tons per year of concentrated caustic soda, and 300,000 tons 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 and will use UHDE German technique. The project will be completed by the end of 2012.

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