The Saudi Arabian Mining Company (Maaden) has signed Heads of Agreement to jointly develop a fully integrated, world-class phosphate production facility in Saudi Arabia with The Mosaic Company and Sabic.

The project cost is approximately SR26 billion ($7 billion). Maaden will own 60 per cent, Mosaic 25 per cent and Sabic 15 per cent. The new complex will be one of the largest integrated phosphate facilities in the world and will approximately double Maaden’s existing phosphate production while adding important new products to its production capabilities.

The project will include new mining and processing plants in the kingdom at Waad Al Shammal Mineral Industrial City, as well as further processing plants at Ras Al Khair Mineral Industrial City. The two sites will be linked by the North-South 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 product, approximately 3 million tonnes of fertiliser products such as DAP/MAP and NP/NPK, as well as approximately 440,000 tonnes of downstream products including purified phosphoric acid (PPA) used in food industries, sodium tripolyphosphate (STPP) used in detergent manufacturing, and dicalcium phosphate and monocalcium phosphate (DCP/MCP) used in the manufacturing of animal feed.

Khalid Al Mudaifer, president and CEO of Maaden, said, “This project represents not only an important milestone in Maaden’s growth, but it will also be an important contributor to the development of the northern region of Saudi Arabia as it will include the first major industrial project to be constructed in the region.” 

The development of local communities in the north of the kingdom will be a key benefit of this project. In addition to direct employment opportunities of nearly 1,500 jobs, a coordinated programme of regional development is underway.

The joint venture partners are developing plans for a local research and development facility. They will also sponsor school programmes to help raise the academic and scientific capabilities of students in selected regional schools in the North.

Maaden will also partner with the Technical Vocational Training Corporation to develop a specialised training centre in Waad Al Shammal.

Mosaic is currently the world’s largest producer of phosphate fertilisers and brings to the JV extensive technical and operating experience, as well as best-in-class environmental and safety management systems. Sabic is ranked second in the world’s diversified chemicals companies and brings broad experience in large project execution and global marketing capability.