Ma’aden concludes aluminium project second phase funding agreement

18 October 2011 (Last Updated October 18th, 2011 18:30)

Alcoa and Ma'aden's subsidiary Ma'aden Bauxite and Alumina has signed financing agreements worth $991.5m with 13 local and international banks for the second phase of the Ma'aden Alcoa fully integrated aluminum joint venture.

Alcoa and Ma'aden's subsidiary Ma'aden Bauxite and Alumina has signed financing agreements worth $991.5m with 13 local and international banks for the second phase of the Ma'aden Alcoa fully integrated aluminum joint venture.

The second phase of the joint venture will include a bauxite mine with an initial capacity of four million metric tonnes a year and an alumina refinery with an initial capacity of 1.8 million metric tonnes a year.

The project will receive about $2.15bn financing, accounting for 60% of the total cost of the second phase, from the public investment fund, Saudi industrial development fund, financial institutions and commercial banks.

The remaining $1.43bn will be financed through Ma'aden and Alcoa in line with their project ownership ratios.

First production from the mine and refinery is scheduled to commence in 2014.