Maaden awards SR 3.69 bn deal to build ammonia plant

Updated 10 July 2013

Maaden awards SR 3.69 bn deal to build ammonia plant

The Saudi Arabian Mining Company (Maaden) announced that it has awarded a contract to build an ammonia plant valued at SR 3.09 billion ($ 825 million) to Daelim Industrial Co. Ltd. (OOK) & Daelim Saudi Arabia Co. Ltd. (IK), according to Tadawul website.
The ammonia plant, which will have the production capacity of 1.1 million tons, will be built at Ras Al-Khair as part of Maaden's Waad Al-Shamal phosphate project. Completion of the plant is expected by late 2016. The contract includes engineering, procurement and construction for the duration of 39 months, starting from the date of the award.
The project partners, together with project financial advisor HSBC, expect to sign the financing of the complex from financial institutions by Q4, 2013.
Maaden and its partners intend to fund the project until the financing closure is secured.
The ammonia plant will be the first out of several processing plants, which Maaden's Waad Al-Shamal phosphate project will construct to develop a fully integrated phosphate production complex at the King Abdullah Project for the Development of Waad Al-Shamal Mineral Industrial City, and at Ras Al-Khair Mineral Industrial City.
The investment cost of the entire phosphate complex is estimated at SR 26 billion, of which around SR 21 billion will be invested in Waad Al-Shamal Mineral Industrial City.
Maaden said it would announce further details in due course.

New emissions blow for VW as German court backs damages claims

Updated 26 May 2020

New emissions blow for VW as German court backs damages claims

  • Scandal has already cost firm more than €30 billion; ruling serves as template for about 60,000 cases

KARLSRUHE, Germany: Volkswagen must pay compensation to owners of vehicles with rigged diesel engines in Germany, a court ruled on Monday, dealing a fresh blow to the automaker almost 5 years after its emissions scandal erupted.

The ruling by Germany’s highest court for civil disputes, which will allow owners to return vehicles for a partial refund of the purchase price, serves as a template for about 60,000 lawsuits that are still pending with lower German courts.

Volkswagen admitted in September 2015 to cheating in emissions tests on diesel engines, a scandal which has already cost it more than €30 billion ($33 billion) in regulatory fines and vehicle refits, mostly in the US.

US authorities banned the affected cars after the cheat software was discovered, triggering claims for compensation.

But in Europe vehicles remained on the roads, leading Volkswagen to argue compensation claims there were without merit. European authorities instead forced the company to update its engine control software and fined it for fraud and administrative lapses.

Volkswagen said on Monday it would work urgently with motorists on an agreement that would see them hold on to the vehicles for a one-off compensation payment.

It did not give an estimate of how much the ruling by the German federal court, the Bundesgerichtshof (BGH), might cost it.

Volkswagen shares were 0.5 percent lower. The BGH’s presiding judge had signaled earlier this month he saw grounds for compensation.

Costs mount

“The verdict by the BGH draws a final line. It creates clarity on the BGH’s views on the underlying questions in the diesel proceedings for most of the 60,000 cases still pending,” Volkswagen said.

A lower court in the city of Koblenz had previously ruled the owner of a VW Sharan minivan had suffered pre-meditated damage, entitling him to reimbursement minus a discount for the mileage the motorist had already
benefited from.

The court at the time said he should be awarded €25,600 for the used-car purchase he made for €31,500 in 2014.

“We have in principle confirmed the verdict from the Koblenz upper regional court,” said BGH presiding federal judge Stephan Seiters.

Volkswagen had petitioned for the ruling to be quashed altogether by the higher court, while the plaintiff had appealed to have the deduction removed.

A Volkswagen spokesman said that outside Germany, more than 100,000 claims for damages were still pending, of which 90,000 cases were in Britain.

The carmaker also said it had paid out a total of €750 million to more than 200,000 separate claimants in Germany who had opted against individual claims and instead joined a class action lawsuit brought by a German consumer group.

The carmaker said last month it would set aside a total of 830 million for that deal.

In a separate court, Volkswagen agreed last week to pay €9 million to end proceedings against its chairman and chief executive, who were accused of withholding market-moving information before the emissions scandal came to light.