Saudi Arabian Mining Company (Ma’aden) has awarded a $825 million EPC contract to Korean company Daelim Industrial
Saudi Arabian Mining Company (Ma’aden) has awarded a $825 million EPC contract to Korean company Daelim Industrial and its Saudi Arabian subsidiary Daelim Saudi Arabia.
Ma’aden is currently developing the Wa’ad Al Shammal phosphate complex, a fully integrated project that includes mining and processing plants at Wa’ad Al Shammal Mineral Industrial City, as well as ammonia and phosphate and compound fertiliser facilities at Ras Al Khair.
Ma’aden issued an award to Daelim Industrial & Daelim Saudi Arabia to build the ammonia plant at Ras Al Khair. The $825 million award covers detailed engineering, procurement, and construction of the ammonia plant, which will have a production capacity of 1.1 million tonnes. Completion is expected in late 2016.
“Today we are pleased to announce the first of several EPC contracts to be awarded before the end of this year for the development of our world class phosphate project at Wa’ad Al Shammal,” said Ma’aden CEO Khalid Al-Mudaifer. “This project will greatly contribute to the economic and social development of the northern region of Saudi Arabia while creating significant value for Ma’aden shareholders.”
The investment cost of the entire phosphate complex is estimated at $7 billion, of which approximately $5.6 billion will be invested in the King Abdullah Project for the Development of Wa’ad Al Shammal. As one of the largest and most efficiently integrated phosphate fertilizer facilities in the world, this project will double Ma’aden’s phosphate production and improve its access to key global markets.
The new facility is expected to commence in late 2016 with a total capacity of approximately 16 million tonnes per year. The facilities is expected to produce, as finished product, approximately 3 million tonnes of fertilizer products such as DAP/MAP and NP/NPK, as well as approximately 440 thousand tonnes of downstream products including purified phosphoric acid (PPA) used in food industries, sodium tripolyphosphate (STPP) used in detergent manufacturing, and Dicalcium Phosphate & Monocalcium Phosphate (DCP/MCP) used in the manufacturing of animal feed.