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Metals and Minerals Processing News
News Release from: SABIC
Edited by the Processingtalk Editorial
Team on 15 March 2007
New phosphate minerals production
project in Saudi
Ma'aden and SABIC have entered an agreement opening the way for the two companies to create a strategic joint venture and join a Saudi phosphate minerals project
Dr Abdullah Ibn Issa Al-Dabbagh, President and CEO of Ma'aden, and Mohamed Al-Mady, Vice-Chairman and CEO of SABIC, have signed an agreement opening the way for the two companies to create a strategic joint venture and join a phosphate minerals project Total capital investment in the project is SR13 billion
This article was originally published on Processingtalk on 18 Jul 2003 at 8.00am (UK)
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SABIC will have a thirty percent (30%) equity share with the seventy percent (70%) balance of ownership will be retained by Ma'aden.
The project aims to utilise phosphate reserves in the north of Saudi Arabia to produce phosphate fertilisers in the Minerals Industrial City at Ras Az Zawr.
Dr Dabbagh said, "This strategic alliance between two major players of Saudi industry is a major boost for the Saudi fertiliser and mining industries.
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It will reinforce existing efforts for the development of an integrated industry and help in the exchange of technology, expertise and development programmes to optimise the utilisation of this vital resource.
It will further drive long term industrial progress, creating high quality Saudi products that are competitive in world markets.
The project caters for effective collaboration between these two leading companies.
Ma'aden will furnish technology and expertise in the phosphate industry while SABIC will provide technology and marketing expertise in the field of nitrogen fertilisers".
Dr Dabbagh stated that the project consists of a phosphate mine and processing plant at Al-Jalamid in the Northern Region of Saudi Arabia.
There will also be a phosphate fertiliser production complex north of Al-Jubail at Ras Az Zawr.
Ma'aden recently signed contracts for the designing of sulphuric acid, phosphoric acid, ammonia and diammonium phosphate plants, producing 3 million tonnes per year of diammonium phosphate fertiliser (DAP) within the fertiliser complex in the Minerals Industrial City at Ras Az Zawr.
The complex is scheduled to go on-stream by mid 2010.
It will be one of the world's largest single phosphate fertiliser complexes.
The phosphate concentrate produced at the mine will be transported 1,200 kilometers to Ras Az Zawr by rail where it will be processed.
The Public Investment Fund (PIF) is financing and supervising the construction of the new North South Railroad that will be used to transport the phosphate concentrates.
The phosphate ore reserves in the North of the country will be surface mined and have an estimated mineable resources of 1.6 billion tonnes in addition to further resources of 1.5 billion tonnes.
Mohamed Al-Mady, SABIC Vice Chairman and CEO expressed his appreciation at the signing of the agreement between SABIC and Ma'aden.
He reaffirmed the significance of strategic partnerships within national production sectors which follow the pattern of major alliances among global companies in the industrial world, aimed at strengthening their competitiveness".
Al-Mady said: "This agreement is a leading step that should be followed by similar initiatives to build up national strategies to implement integration among these sectors and optimise the use of hydrocarbon and mineral resources nation-wide to drive industrial development, increase contribution to the GDP and diversify the national income resources".
Al-Mady explained that the agreement between SABIC and Ma'aden will add considerable value to the Saudi fertiliser industry.
He said, "It provides for growth to meet the national agricultural sector's needs and better contribute to achieving world food security.
SABIC is one of the world's largest producers of fertilisers with an annual capacity exceeding 8 million tonnes, and is the world's largest producer of granular urea.
It has built up a world-class global marketing network and advanced R+T facilities which innovate and have developed many industrial technologies.
SABIC also plays a leading role in agricultural research".
Approximately 1,400 new direct jobs will be created by the project with significant numbers of additional indirect jobs being created in supporting industries.
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