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.
Maaden awards SR 3.69 bn deal to build ammonia plant
