JEDDAH: Saudi Arabian Mining Co (Maaden) has said its phosphate joint venture with Saudi Basic Industries Corp (SABIC) started initial production on Friday.
“Maaden announces that Maaden Phosphate Company (MPC) has started initial production from the first production lines of sulfuric acid, phosphoric acid for captive use and Diammonium Phoshate Fertilizer (DAP),” Maaden said in a statement.
SABIC owns 30 percent in the joint venture, while Maaden holds the remainder.
The joint venture will produce about three million tons per year of DAP when it reaches full production. This represents more than 10 percent of current global demand, the statement said.
The $5.5 billion joint venture remains on course to be completed on budget.
SABIC will market 77 percent of production with the remainder marketed by Maaden.
“This is the first of Ma’aden’s mega projects to become operational and when in full commercial production will considerably enhance Ma’aden’s revenue profile,” commented Khalid Al Mudaifer, president and CEO of Ma’aden.
“The successful development of MPC proves how such integrated minerals based projects can create value for shareholders, sustainable employment opportunities and regional development in the Kingdom.”
He said: “This complex operation is the largest fully integrated phosphate fertilizer project in the word and will place the Kingdom among the world leaders of the phosphate industry.”
He added: “We are all proud that in addition to building this world scale operation in full compliance with the highest health, safety and environmental standards, an outstanding organization has been built with best in class processes and systems supported by state of the art computerized management systems. Of MPC’s 1,200 employees more than 60 percent in operations and 70 percent in management are Saudi. More than 350 Saudi high school leavers and fresh graduates have been trained and developed to operate this complex. The production of the Kingdom’s first diammonium phosphate fertilizer is the realization of years of dedication and hard work by the all the teams involved.”
He praises the government’s support for the Kingdom’s mining industry through the Ministry of Petroleum and Mineral Resources, Public Investment Fund and Saudi Arabian Railways and the inclusion of the mining sector’s needs in national infrastructure development plans.
MPC includes a phosphate mine and beneficiation plant at Al Jalamid in the north of Saudi Arabia and a processing complex at Ras Az Zawr on the Kingdom’s East coast consisting of four plants producing sulphuric acid, ammonia, phosphoric acid and, DAP respectively.
The two sites are linked by a new 1,500 km railroad and supported by extensive infrastructure including a new port at Ras Az Zawr.
Maaden has five operating gold mines in Saudi Arabia, two further industrial minerals operations and is constructing a $10.8 billion integrated aluminum joint venture with Alcoa.
The company has more than 11 million ounces of gold resources in its license areas and is carrying out extensive exploration in the Kingdom to grow its existing projects and expand its minerals portfolio.