Ma’aden awards USD 922 mn in contracts for fertilizers megaproject

Saudi Arabian Mining (Ma'aden) signed three construction agreements worth over USD 922 mn for its third phosphate fertilizers project in Wa’ad Al Shamal and Ras Al Khair, according to a disclosure to Tadawul.

The agreements include:

• A USD 363 mn (SAR 1.4 bn) contract with China based Sinopec Nanjing Engineering & Construction for acid production units and related infrastructure at Wa’ad Al Shamal;
• A USD 234 mn (SAR 877 mn) agreement with Turkey’s Tekfen Construction for construction of a beneficiation plant at Wa’ad Al Shamal;
• A USD 325 mn (SAR 1.2 bn) contract with the China National Chemical Engineering Company for general construction works at the Ras Al Khair facility.

On the project: Ma'aden announced its third project for manufacturing phosphate fertilizers back in 2016, estimating the project’s total cost at SAR 24 bn. The complex is set to increase the company’s annual production capacity by 50% to 9 mn tonnes.

ICYMI- In December, the PIF-backed company acquired Mosaic Phosphates BV’s full 25% stake in the Ma’aden Wa’ad Al Shamal Phosphate Company joint venture, raising Ma’aden’s ownership in the JV to 85%.

ALSO FROM MA’ADEN-

Ma'aden is mulling an international bond issuance to fund a USD 12 bn investment program set to run until 2030, Bloomberg reports citing an interview with CEO Bob Wilt. “We are going to spend on average USD 2.5 bn a year over the next five years in growing our phosphates business, our aluminum business, and our gold and base metals business,” Wilt said. No details were provided on the potential size or timeline of the issuance.

Where we stand: The company is already in discussions with banks, and will decide on the financing later this year, the newswire reports.