Ma'aden, Mosaic and SABIC set up joint venture to construct 3.5 million tonne phosphate operation in Saudi Arabia
Source: BI-ME , Author: Posted by BI-ME staff
Posted: Tue August 6, 2013 11:48 am
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SAUDI ARABIA. The Mosaic Company (NYSE: MOS) today announced that it has entered into a Shareholders' Agreement with Saudi Arabian Mining Company (Ma'aden) and Saudi Basic Industries Corporation (SABIC) to participate in integrated phosphate production facilities in the Kingdom of Saudi Arabia.

The companies have been working toward the agreement since a Heads of Agreement was signed in March.

Ma'aden, Mosaic and SABIC will own 60, 25 and 15% of the joint venture, respectively.

The estimated US$7 billion greenfield project, to be known as Wa'ad Al Shamal, or Northern Promise, Phosphate Project, will be built in the northern region of Saudi Arabia at Wa'ad Al-Shammal Minerals Industrial City, and in Ras Al Khair Minerals Industrial City which is located on the east coast of Saudi Arabia.

The highly cost-efficient project is expected to have a production capacity of 3.5 million tonnes of finished phosphate per year. Operations are expected to commence in late 2016.

Under the terms of the agreement, Mosaic will contribute expertise to the design, construction and operations of the new facilities and acquire a 25%t ownership stake. In connection with its equity share, Mosaic will market approximately 25%t of the joint venture's product, including phosphate fertilizer and animal feed.

Subject to final financing terms, Mosaic's cash investment is expected to be up to US$1 billion, funded over a four-year period beginning in 2013. 

"We are pleased with the progress on our joint venture with Ma'aden and SABIC," said Mosaic President and Chief Executive Officer Jim Prokopanko. "This cost-effective project will allow Mosaic to extend our ability to serve key growing agricultural markets.

"Our growing global reach further enables us to fulfill Mosaic's mission, to help the world grow the food it needs, while delivering compelling shareholder value."

About The Mosaic Company 

The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients. Mosaic is a single source provider of phosphate and potash fertilizers and feed ingredients for the global agriculture industry.

More information on the Company is available at www.mosaicco.com

About Ma'aden 

Ma'aden, the Saudi Arabian Mining Company, is a leading mining and metals company in the Kingdom of Saudi Arabia, with a diverse portfolio of mineral assets at various stages of development including exploration, development and production. Ma'aden has a broad commodity focus spanning gold, phosphate, aluminium, magnesia, low-grade bauxite and industrial minerals, and is continually assessing opportunities to enter into new commodities that demonstrate strong long-term fundamentals and opportunities for growth. Ma'aden's objective is to become a world class diversified mining and minerals company, and to enhance overall value for its shareholders. Ma'aden's mission is to be a profitable, publicly owned, international mining company, while maintaining the utmost concern for human resources, health, safety, environmental and social issues.

For more information please visit www.maaden.com.sa

About SABIC 

Ranked among the world's largest petrochemicals manufacturers, SABIC is a public company based in Riyadh, Saudi Arabia. 70% of the Company's shares are owned by the Saudi Arabian government, with the remaining 30% held by private investors in Saudi Arabia and other countries of the Gulf Cooperation Council. 

SABIC began in 1976 by Royal decree. Today, the company has operations in over 40 countries with a global workforce of over 40,000 talented individuals. 

 

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