Ma'aden-Alcoa finalise aluminium project financing deal

The Saudi Arabian Mining Company, Ma'aden and Alcoa announced the signing of financing agreements by Ma'aden Bauxite and Alumina Company for the second phase of the US$10.8 billion Ma'aden Alcoa fully integrated aluminium joint venture.

The agreements consist of conventional and Islamic allocations totalling US$991.5 million. Ma'aden Bauxite and Alumina Company is owned 74.9% by Ma'aden and 25.1% by Alcoa and consist of a bauxite mine and an alumina refinery with an approximate cost of US$3.585 billion. About 60% of the total cost of the second phase, worth US$2.151 billion, is financed through the Public Investment Fund, Saudi Industrial Development Fund, financial institutions and commercial banks, while the remainder US$1.434 billion will be financed through the project partners, Ma'aden and Alcoa in line with their project ownership ratios.

"The agreements signed today represent significant progress in the development of Ma'aden as a major new industrial presence in Saudi Arabia, creating jobs, regional development and providing the basis for the establishment of new downstream industries in the Kingdom," said Ma'aden President & CEO Engr. Khalid Al-Mudaifer.Ken Wisnoski, Alcoa Vice President, President Alcoa Global Primary Products Growth, added, "This is fundamentally attributable to the strong relationships developed among the partner teams on every facet of the project, from safety on site, commitment to schedule and budget, to financing locally and internationally. This project truly represents a commitment to excellence throughout."