Saudi Arabian Mining Company (Maaden) said its subsidiary Bauxite and Alumina Company has signed a SR 3.75 billion ($1 billion) financing agreement with the Public Investment Fund (PIF) for the second phase of its aluminium project.

The second phase of the project, comprising a bauxite mine at Al Ba’itha and an alumina refinery at Ras Al Khair, will cost $3.58 billion.

The PIF loan will be repaid over a period of 16 years starting in 2017.

The project, a joint venture between Ma’aden (74.9 per cent) and Alcoa (25.1 per cent) is being built in two phases, both of which are now under construction.

The first phase consists of an aluminium smelter and rolling mill, both situated at Ras Al Khair which will begin operating in 2013. The mine and refinery are due to come on stream in 2014.

“The Public Investment Fund concentrates on the development of different economic sectors to achieve the government’s strategic objectives of expanding the Kingdom’s industrial base, diversifying income and creating jobs for Saudi people.” said Mansour Al Mayman, secretary general of the PIF.

“This financing clearly shows the Public Investment Fund’s commitment to supporting sustainable industrial projects in Saudi Arabia,” he noted.

“The signing of the financing agreement with the Public Investment Fund clearly shows the Government’s commitment to building Saudi Arabia’s mining industry and bringing new technologies and industries to the Kingdom,” commented Engr.

Ma’aden president and CEO Khalid Al Mudaifer said the impact of this new industry will be highly significant in terms of job creation, regional development and economic diversification.

'The project team has made excellent progress to date and are dedicated to ensuring the highest standards are applied to every aspect of their work from day to day site safety to long term sustainability considerations,' he added.

Ma’aden’s aluminium project is the only one in the Middle East with an integral supply of alumina and its rolling mill will be one of the most technologically advanced in the world and the only one in the region capable of producing food grade can sheet.-TradeArabia News Service