Saudi Arabia's Ma'aden Says Phosphate Project Starts Commercial Production

Wednesday, Feb 01, 2012

RIYADH (Zawya Dow Jones)--Saudi Arabian Mining Co. (1211.SA), or Ma'aden, said Wednesday its Maaden Phosphate Co., or MPC, joint venture with Saudi Basic Industries Corp (2010.SA), started commercial production of phosphate fertilizer at its industrial complex in Ras Al Khair on the Persian Gulf.

MPC is currently producing sulphuric acid, phosphoric acid for captive use and diammonium phosphate, or DAP, fertilizer at its Ras Al Khair facilities, Maaden said in a statement posted on the Saudi bourse website.

The plant production will gradually increase in the coming few months, until it reaches the designed capacity of 3 million tons of DAP per year, said Maaden, which owns 70% of the venture. The financial effect will be shown in the company's 2012 first quarter results, it added.

The commercial startup of the $5.5 billion project was previously delayed to the third quarter of last year from the fourth quarter of 2010.

MPC's operation also includes a phosphate mine and beneficiation plant at Al Jalamid in the north of Saudi Arabia, in addition to the Ras Al Khair processing complex. The two sites are linked by a new 1,500 kilometer railroad and supported by new infrastructure including the Ras Al Zour port.

Maaden is also in the process of building a $10.8 billion integrated aluminium smelter in a joint venture with Alcoa of the U.S .

-By Summer Said, Dow Jones Newswires; +966-546-842373; summer.said@dowjones.com

(END) Dow Jones Newswires

01-02-12 1315GMT