JEDDAH, 7 December 2003 — Several international companies have expressed interest in the SR12 billion Al-Zubairah bauxite project in the Eastern Province, according to the Saudi Arabian Mining Company (Maaden).
“We will decide once we have studied the offers these companies are going to make,” the state-owned company said.
The announcement comes after a working team led by Maaden Chairman Dr. Abdullah Al-Dabbagh held a series of talks with foreign companies on running large industrial complexes specializing in aluminum production.
“The aim of the talks was to find a strategic partner for the bauxite project, which involves establishing a smelter and refinery for aluminum and alumina,” a company statement said.
Maaden has already signed a financial consultancy agreement with Riyad Bank and the Australia and New Zealand Banking Group to conduct a detailed feasibility study of the Al-Zubairah project.
Preliminary studies have proved that the area between Qasim and Hail in the north has bauxite deposits of more than 126 million tons, 57 percent of which is alumina, Al-Dabbagh said.
The study is slated for completion in mid-2004.
Maaden plans to extract 3.4 million tons of bauxite annually for the production of 620,000 tons of aluminum a year.
Maaden said talks with the international companies focused on investment prospects in mineral industries and transfer of advanced technology.
The Kingdom is also looking for investors to exploit its vast phosphate resources in the north. According to a study prepared by the Royal Commission for Jubail and Yanbu, the country’s phosphate reserves are estimated at 110 million tons.
Maaden has signed an agreement with Saudi Oger to establish a joint company to develop phosphate mines and transport raw phosphate on railways. The project is estimated to cost $800 million to $2 billion.
Maaden, wholly owned by the Petroleum Ministry, was set up in March 1997. The government plans to privatize it.
