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October 16, 2011

Alcoa and Ma’aden Complete Aluminum Project Financing Agreements

NEW YORK & RIYADH, Saudi Arabia--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 year
  • An alumina refinery with an initial capacity of 1,800,000 metric tons per year
  • An aluminum smelter with an initial capacity of 740,000 metric tons per year
  • 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.