Maaden to launch 3rd phosphate project in 2018, says Al-Falih

Saudi Arabian Mining Company (Maaden) is planning to begin operations at the third phosphate facility at Waad Al-Shamal in 2018, Reuters reported, citing the company’s chairman and Saudi energy minister Khalid Al-Falih.

Maaden is expanding as part of Saudi Arabia’s plan to diversify the economy beyond oil exports. The government is aiming to more than triple the mining’s sector’s contribution to economic output by 2030.

Last year, the company said it was developing its third project to manufacture phosphate fertilizers at its Waad Al-Shamal facility at an estimated cost of SAR 24 billion ($6.4 billion).

“Maaden is ready to move forward. This will position Saudi Arabia to be one of largest phosphate fertilizer producers in the world,” Al-Falih was quoted as saying.

Once at full capacity, the complex will likely double the Kingdom’s production to 6 million tons a year, he added.

Two weeks ago, the government approved a mining strategy that focuses on building a digital database of mineral deposits, accelerating licensing processes and providing funding to mining companies, especially small companies, Al-Falih said.

Al-Falih also expects progress on a $3.5 billion expansion project of Maaden’s aluminum facility in Ras al-Khair, for which the firm asked banks to refinance part of a $2.88 billion debt in September.

“Expansion projects tend to be more profitable than starting new projects. So this direction is moving forward,” he said, adding that Maaden will announce gold and copper projects in future, without disclosing a timeframe.