Riyadh – Mubasher: Saudi Arabian Mining Company (Ma’aden) on Monday announced signing a deal to build its third ammonia plant at a value of SAR 3.35 billion ($892 million).
The deal signed with Daelim Industrial and Saudi Daelim Limited comes as part of Ma’aden’s Phosphate Three project, it said in a statement to the Saudi Stock Exchange (Tadawul).
The new ammonia plant will be built in Ras AlKhair Industrial City on the eastern coast of Saudi Arabia and north of Jubail.
“Daelim Industrial and Saudi Daelim Limited will jointly carry out the engineering, procurement and construction for the project, which will be implemented over 38 months,” Ma’aden revealed.
As per the design capacity, the new plant is set to produce approximately 1.1 metric tonnes of ammonia per annum.
The financial impact of this plant is expected to appear in Ma’aden’s financial results for 2022, that is after the plant is completed within its 38-month time frame.
It is worth mentioning that this plant is one of several plants Ma’aden plans to build as part of its third phosphate complex, whose total cost is estimated total at SAR 24 billion ($6.40 billion).
“This project is an additional milestone toward achieving the Kingdom’s vision 2030, and will amplify Ma’aden’s presence as a phosphate producer in world markets as well as its competitive advantage and leadership in this vital sector,” the company concluded.
Ma’aden last reported 45.25% year-on-year surge in net profits to SAR 517.76 million in the second quarter of 2018 versus SAR 356.47 million.
Ma’aden’s stock closed Monday in the red, after falling 6.4% to SAR 41.
