Sunday, Jul 03, 2011
(This item was originally published on Saturday.)
RIYADH (Zawya Dow Jones)--Saudi Arabian Mining Co. (1211.SA), or Maaden, said Saturday it has secured $1 billion commercial bank financing for its aluminium joint venture with U.S.-based Alcoa Inc. (AA).
The loans period will be 16 years and they will be paid in 21 half-yearly installments starting from June 30, 2017, Maaden said in a statement posted on the Saudi bourse website. The company did not name the lenders or disclose any other terms of the loans.
Last month, Maaden said it got a $1 billion loan from the Saudi government's Public Investment Fund, or PIF, to help finance the joint venture, known as Maaden Bauxite and Alumina Co., which is owned 74.9% by Maaden and 25.1% by Alcoa. It comprises a bauxite mine and an alumina refinery project worth about $3.61 billion.
The venture is second phase of the $10.8 billion fully- integrated aluminum complex Maaden is developing with Alcoa, which will include an integrated alumina refinery, aluminum smelter and rolling mill at Ras Azzour on Saudi's eastern coast on the Persian Gulf.
Maaden said that 60% of the total cost of the second phase will be financed by PIF, Saudi Industrial Development Fund, and other financial institutions and commercial banks.
The remaining $1.44 billion will be financed by project partners, Maaden and Alcoa on pro-rata basis.
The planned complex will be the world's lowest-cost supplier of primary aluminum, alumina and aluminum products as well as the Middle East's first food-grade can-sheet rolling mill.
Operations at the smelter and rolling mill will begin in 2013, while the mine and refinery are expected to come online in 2014.
-By Summer Said, Dow Jones Newswires; +966-546-842373; summer.said@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
03-07-11 0400GMT
