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.