Saudi Arabian Mining Co. — Capital/Financing Update 2013

Mar 19, 2013

Saudi Arabian Mining company MAADEN announces the signing of Heads of Agreement with The Mosaic Company and Saudi Basic Industries Corporation (SABIC) to jointly develop a fully integrated phosphate production facility

1211 · 19/03/2013 16:00:28 · Announcement #29625 · View on Saudi Exchange

Saudi Arabian Mining company MAADEN announces the signing of Heads of Agreement with The Mosaic Company and Saudi Basic Industries Corporation (SABIC) to jointly develop a fully integrated phosphate production facility

The Saudi Arabian Mining Company (Maaden) announces today 07/05/1434H (corresponding to 19/03/2013G) that it has signed Heads of Agreement with The Mosaic Company and SABIC to develop jointly a fully integrated, world-class phosphate production facility in the Kingdom of Saudi Arabia at King Abdullah Project for the development of Waad Al Shamal Mineral Industrial City. Maaden, Mosaic and SABIC will own 60%, 25% and 15% of the joint venture respectively.

As announced on the Tadawul website on 20/02/2012G, this Phosphate project at King Abdullah project for the development of Waad Al Shammal Mineral Industrial City will include a new mine and a processing plant complex in the north region of Saudi Arabia, as well as further processing plants at Ras Al Khair Mineral Industrial City in the eastern province. The estimated cost of the project is 26 billion Saudi Riyals. The two sites will be linked by the existing North-South Mineral Railway.

Production at the new facilities is expected to commence in late 2016 with a total production capacity of approximately 16 million tonnes per year.

The facilities will produce as finished products approximately 3 Million tonnes of phosphate and compound fertilizer (DAP/MAP and NP/NPK) and 440 thousand tonnes of phosphate downstream products including purified phosphoric acid (PPA) used in the food industry, sodium tri-polyphosphate (STPP) used in detergent manufacturing, and Di-calcium Phosphate & Monocalcium Phosphate (DCP/MCP) used in the manufacturing of animal feed.

Maaden will announce further details in due course

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