Monday, Nov 28, 2011
(This story was originally published Sunday.)
RIYADH (Zawya Dow Jones)--Saudi Arabian Mining Co. (1211.SA), or Maaden, said Sunday it had secured $1 billion in financing from the Public Investment Fund, or PIF, for its aluminium joint venture with U.S.-based Alcoa Inc. (AA).
The loan for the joint venture, known as Maaden Bauxite and Alumina Co., will be repaid in 21 semi-annual installments, Maaden said in a statement posted on the Saudi bourse website. The repayment will start June 30, 2017 and will be for a period of 16 years, it said.
The joint venture, which is owned 74.9% by Maaden and 25.1% by Alcoa, comprises a bauxite mine and an alumina refinery project. It is the second phase of the $10.8 billion, fully-integrated aluminum complex that 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.
The total cost of the second phase of the aluminium project is estimated to be 13.5 billion Saudi riyals ($3.6 billion).
Maaden said 60% of the total cost of the second phase, or SAR8.1 billion, has been financed through different lenders. The firm secured SAR3.8 billion from the PIF and SAR3.72 billion from commercial banks and an unnamed financial institution. Further funding of SAR600 million by the Saudi Industrial Development Fund is currently under evaluation.
The remaining portion of the total cost, about SAR5.4 billion, will be financed by Maaden and Alco on a pro-rata basis.
Maaden has previously said that 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
28-11-11 0336GMT
