Ma’aden has secured a $2.1bn loan from Saudi Arabia’s Ministry of Finance through its Public Investment Fund (PIF) for initiating Phase 1 work on its aluminium project.

As part of the loan, PIF offered $1.3bn to finance Ma’aden Aluminium Company and $821m to finance Ma’aden Rolling Company, both owned by the Ma’aden Alcoa joint venture.

According to Ma’aden, the JV will develop a bauxite mine with an initial capacity of four million metric tons a year (mtpa), and an alumina refinery with an initial capacity of 1.8 million mtpa

The mine and refinery are expected to begin their first commercial production in 2014.

Ma’aden expects the total capital investment of JV to be around SAR40.5bn ($10.8bn).