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Saudi Arabian Mining Company (Ma’aden) has signed a US$5bn loan agreement to support the development of the Wa’ad al-Shamal phosphate mine, which is under construction in the kingdom
The funds are being provided by 20 Middle Eastern banks, international financial organisations and the Saudi Arabia Public Investment Fund, stated reports.
The phosphate mine, worth US$7.5bn, is a joint venture (JV) between Saudi Basic Industries Corporation (SABIC), The Mosaic Company and Ma’aden. The Wa’ad Al-Shamal will also build smaller factories to produce ammonia and phosphate-based fertilisers, near Turaif — close to the company’s Ras Al-Khair facilities and Saudi Arabia’s ports.
Khalid Al-Rowais, vice-president for finance at Ma’aden, said, ”These financing facilities represent another milestone in the growth of Ma’aden and take the total fundraising by Ma’aden to almost US$20bn since 2008. Commitments received from financial institutions were considerably in excess of the funds required.”
Officials at Ma’aden revealed that the company secured US$4.2bn in funds from local, regional and international banks for the phosphate project in December 2013. By April 2014, the Saudi Arabian government’s Public Investment Fund agreed to provide US$2bn. Another US$1.17bn came from the Korean Eximbank and Korea Trade Insurance Corp.