| Country |
: |
Saudi Arabia |
| Project Value |
: |
USD 2,000,000,000 Estimated |
| Sector |
: |
Industry | Aluminium |
|
Consultants |
: |
Jv of Fluor Arabia Limited and WorleyParsons
(EPCM) |
WorleyParsons
(FEED) |
|
PMC |
: |
Fluor Arabia Limited
|
|
Contractor |
: |
Hyundai Engineering & Construction Company Limited - Saudi Arabia
(EPC) |
| Profile Type |
: |
Contract Project
|
| Associated Projects |
: |
Contract (10) |
|
Phase:
EPC - Execution
|
|
Completion: 2014
|
|
|
|
| Background |
Maaden Aluminum CompanyMaaden Aluminum Company (MAC) plans to build an Alumina Refinery as part of phase 2 of the Aluminum Complex, located in the Minerals Industrial City at Ras Al Zour on the east coast of Saudi Arabia.
Phase 2 will comprise the bauxite mine and the refinery.
Feedstock for the alumina refinery will be mined from Al Baitha (a bauxite mine with ore handling facilities) located near Quiba in north-eastern Saudi Arabia. Bauxite ore will be transported by rail to Ras Al Zour.
Feedstock for the smelter will be sourced from international markets till the refinery project comes on stream.
WorleyParsonsWorleyParsons is the FEED consultant for the refinery.
Fluor ArabiaFluor Arabia is the overall PMC.
The Jv of Fluor ArabiaFluor Arabia and WorleyParsonsWorleyParsons is the EPCM. |
| Expected Events |
| Schedule |
Contract Phase/Phase |
Description |
| 2014 |
Completion | Project expected to be completed
|
|
| Latest Events |
In March 2012, the EPC contract contract was awarded to Hyundai Engineering and Construction Company to complete the construction of the project. The contract signed with the Jv of Fluor ArabiaFluor Arabia and WorleyParsonsWorleyParsons was amended to be limited to an EPCM contract from an EPC and management contract.
In 2014, the project is expected to be completed. |
| Previous Events |
In February 2012, construction of the refinery started.
In August 2011, a ground breaking ceremony was held at the project site.
In July 2011, the FEED study was completed.
In Q3 2010, the FEED study started.
On 23 May 2010, the USD 202 million EPC and Management contract was officially signed with the JV of Fluor CorporationFluor Corporation and WorleyParsonsWorleyParsons.
On 2 May 2010, the JV issued a letter of intent to the JV of Fluor CorporationFluor Corporation and WorleyParsonsWorleyParsons for the EPC and Management contract.
On 20 December 2009, MaadenMaaden signed a contract with Alcoa to form a joint venture to develop the complex.
On 12 December 2009, four companies submitted their bids for the EPC and Management contract.
In October 2009, MaadenMaaden decided to retender the EPC and Management contract for the refinery.
In January 2009, MaadenMaaden decided to delay the start of production at the complex by two to three years due to the financial crisis and the withdrawal of Rio Tinto from the project.
In December 2008, Rio Tinto decided to withdraw from the shareholder agreement due to the global financial crisis. Rio Tinto will remain involved in the project through a technical cooperation agreement with MaadenMaaden. MaadenMaaden was reviewing downwards the project's financing and subsequent size and scope.
In November 2008, Saudi Arabia's state mining company and Rio Tinto Alcan were reviewing the aluminum project in the wake of the financial crisis.
In Q3 2008, the PMC contract was awarded to Fluor CorporationFluor Corporation. |
| Scope of Work |
Construction of two independent process trains comprising of:
-Crusher and grinder
-Digester
-Flash tanks
-Settling tanks
-Precipitators
-Calcination kilns |
| Financing Source |
Riyad BankRiyad Bank and Standard Chartered BankStandard Chartered Bank are the Financial Advisers.
In November 2011, MaadenMaaden Aluminium Company secured a USD 1 billion from the Public Investment Fund for the financing of phase 2.
In October 2011, MaadenMaaden Aluminium Company signed a 16-year financing deal. The deal includes conventional and Islamic allocations totaling USD 991.5 million with 13 local and international banks including National Commercial BankNational Commercial Bank, Riyad BankRiyad Bank, Saudi French BankSaudi French Bank, Al-Rajhi BankAl-Rajhi Bank, Samba Financial GroupSamba Financial Group, Alinma BankAlinma Bank, Arab National BankArab National Bank, Saudi British BankSaudi British Bank (SABB), Bank AlJaziraBank AlJazira, Saudi Hollandi BankSaudi Hollandi Bank, Saudi Investment BankSaudi Investment Bank, Emirates BankEmirates Bank and Export Development Canada. The remaining SAR 4.35 billion (USD 1.16 billion) will be secured by the Public Investment Fund and the Saudi Industrial Development Fund.
In July 2011, a banking group for the financing deal was formed and pricing on the USD 1 billion commercial bank tranche was decided. The formed banking group includes local Saudi lending banks and international banks as well.
In mid June 2011, banks submitted their confirmation and commitment letters to MaadenMaaden regarding the financing deal for the project.(extended from 8 June 2011).
On 7 May 2011, banks received the information package details of the financing plan.
In May 2011, MaadenMaaden launched the financing process for the project and sent information packages to banks on the financing for the project. The financial scheme will include a USD 2.16 billion debt package made up of USD 1 billion each from commercial banks and the Public Investment Fund (PIF)Public Investment Fund (PIF), and a USD 160 million loan from the Saudi Industrial Development fund (SIDF)Saudi Industrial Development fund (SIDF). The debt will have a tenor of 16 years and will be on a 60:40 debt and equity ratio basis.
In December 2010, preparations to approach banks regarding the financing of the project started. |
| Contract Packages |
| Type |
Project Name |
Contract Value |
 |
MAC - Ras Al Zour Aluminum Complex |
USD 10,800,000,000 |
|
MAC - Ras Al Zour Aluminum Complex - Aluminum Smelter |
USD 5,000,000,000 |
|
MAC - Ras Al Zour Aluminum Complex - Aluminum Smelter - Materials Handling Facilities |
USD 100,000,000 |
|
MAC - Ras Al Zour Aluminum Complex - Alumina Refinery - Integrated Digestion and Evaporation Facility |
USD 65,000,000 |
|
MAC - Ras Al Zour Aluminum Complex - Alumina Refinery - Steam Host Facility |
USD 100,000,000 |
|
MAC - Ras Al Zour Aluminum Complex - Aluminum Calciners |
USD 89,000,000 |
|
MAC - Ras Al Zour Aluminum Complex - Aluminum Refinery - Steel Storage Tanks |
USD 60,000,000 |
|
MAC - Ras Al Zour Aluminum Complex - Aluminum Smelter - Cast House |
USD 350,000,000 |
|
MAC - Ras Al Zour Aluminum Complex - Aluminum Smelter - Potlines (Phase 1) |
- |
|
MAC - Ras Al Zour Aluminum Complex - Aluminum Smelter -Tank Farm |
USD 200,000,000 |
|
MAC - Ras Al Zour Aluminum Complex - Rolling Mill |
USD 2,500,000,000 |
|
| Project News |
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Contract Project
|
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