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October 16, 2011
Alcoa and Ma’aden Complete Aluminum Project Financing Agreements
NEW YORK & RIYADH, Saudi Arabia--(BUSINESS WIRE)--Alcoa (NYSE:AA) and The Saudi Arabian Mining Company, Ma’aden, today
announced the signing of financing agreements by Ma’aden Bauxite and
Alumina Company, the second phase of the US$10.8 billion Ma'aden Alcoa
fully integrated aluminum joint venture.
The agreements consisting of conventional and Islamic allocations
totaling $991.5 million were signed with 13 local and international
banks including National Commercial Bank, Riyadh Bank, Saudi French
Bank, Al Rajhi Bank, SAMBA Financial Group, Al Inma Bank, Arab National
Bank, Saudi British Bank, Bank AlJazira, Saudi Hollandi Bank, Saudi
Investment Bank, Emirates Bank and Export Development Canada.
Ma’aden Bauxite and Alumina Company is owned 74.9% by Ma'aden and 25.1%
by Alcoa and consists of a bauxite mine and an alumina refinery with an
approximate cost of $3.6 billion. Sixty percent of the total cost of the
second phase ($2.15 billion) is financed through the Public Investment
Fund, Saudi Industrial Development Fund, financial institutions and
commercial banks while the remainder ($1.43 billion) will be financed
through the project partners, Ma’aden and Alcoa in line with their
project ownership ratios.
“The support of the banks and institutions demonstrates their firm
confidence in the capacity of the project partners to successfully
deliver this landmark project on time and within budget,” said Ma’aden
President & CEO Engr. Khalid Al-Mudaifer. “The agreements signed today
represent significant progress in the development of Ma’aden as a major
new industrial presence in Saudi Arabia, creating jobs, regional
development and providing the basis for the establishment of new
downstream industries in the Kingdom.”
“We are exceptionally pleased with the progress of the project with both
phases now under construction and financing completed.” added Ken
Wisnoski, Alcoa Vice President and President Alcoa Global Primary
Products Growth. “This is fundamentally attributable to the strong
relationships developed among the partner teams on every facet of the
project, from safety on site, commitment to schedule and budget, to
financing locally and internationally. This project truly represents a
commitment to excellence throughout.”
About the Ma’aden Alcoa joint venture
In its initial phases, the joint venture will develop a fully integrated
industrial complex, including:
A bauxite mine with an initial capacity of 4,000,000 metric tons per
An alumina refinery with an initial capacity of 1,800,000 metric tons
An aluminum smelter with an initial capacity of 740,000 metric tons
A rolling mill, with initial capacity of 380,000 metric tons per year.
The mill will be the first in the Middle East and will be one of the
most technically advanced mills in the world.
First commercial production from smelter and mill is scheduled for 2013.
First production from the mine and refinery is set for 2014. Alcoa will
supply alumina to the smelter in the interim period.
Total capital investment in the joint venture is expected to be
approximately SAR 40.5 billion ($US 10.8 billion). Ma'aden holds 74.9
percent of the joint venture; Alcoa 25.1 percent with provisions in
place to enable an increase to 40 percent.