Maaden’s agreement with Shareek to boost phosphate production by 50%: CEO

Robert Wilt, CEO of Saudi Arabian Mining Co. (Maaden)

Robert Wilt, CEO of Saudi Arabian Mining Co. (Maaden), said that the framework agreement signed on March 1 with Shareek Program is a good example of a public-private partnership (PPP), which will help the company boost phosphate production by 50%.

Maaden currently produces six million tons of phosphate annually and contributes nearly 10% to food security worldwide, he told Argaam on the sidelines of Shareek ceremony.

The CEO added that the expansion will help boost production capacity by three million tons.

Shareek will help Maaden accelerate project completions, receive support for logistics services, infrastructure, labor force training and ensure supply chain availability.

Work is still underway on defining the company’s contribution to the program, Wilt said, adding that the project is worth billions of dollars.

Further, the projects that joined Shareek program include the ongoing Phosphate 3 Complex, located among industrial zones in Waad Al Shamal and Ras Al Khair in the Eastern Province, as there is a single integrated value chain.

Wilt said this will help grow the profit of Maaden, which aspires to increase earnings before taxes by 10 times by 2040, one of its key goals.

He added that the Kingdom has a prime logistics location between three continents, and huge mineral resources to produce gas, fertilizers and phosphate.

Maaden can play a role in enhancing food security worldwide, he said. The United Nations (UN) estimates that no less than 300 million people are currently vulnerable to the risk of food insecurity.

Commenting on the company’s annual results, the CEO said 2022 was the best and safest year in the company’s history in terms of profitability and cash flows. On balance sheet, debt is equal to 1.3x of EBITDA.

Maaden is witnessing a great transformation in line with the third pillar of the Saudi industrial economy. It is a key player in environmental, social, and governance (ESG), sustainability and Vision 2030.

Fundamentals are very good, in terms of demand for phosphate and aluminum in several markets, where the company operates, the CEO said.

“We should be set up for another great year,” Wilt concluded, citing Maaden’s cost advantage.

Shareek announced, on March 1, the first wave of supported projects for large companies, Argaam reported.

The mining firm posted a 78% rise in net profit after Zakat and tax to SAR 9.31 billion in 2022, from SAR 5.22 billion a year earlier.