Monday, Oct 17, 2011
(This item was originally published on Sunday.)
RIYADH (Zawya Dow Jones)--Saudi Arabian Mining Co. (1211.SA), or Maaden, said Sunday it secured 3.72 billion Saudi riyal ($991.5 million) in financing for its aluminium joint venture with U.S.-based Alcoa Inc. (AA).
The joint venture, known as Maaden Bauxite and Alumina Co., signed the financing agreements for the second phase of the aluminum project with 13 local and international banks as well as financial institution, Madden said in a statement posted on the Saudi bourse website.
The loans will be paid in 21 semi-annual installments and repayment will start on June 30, 2017 for a period of 16 years.
Earlier this year, Maaden secured $1 billion commercial bank financing for its aluminium joint venture and another $1 billion loan from the Saudi government's Public Investment Fund, or PIF.
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 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 financing agreements for the remaining $1.16 billion will be completed later through the PIF and Saudi Industrial Development Fund, or SIDF.
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
17-10-11 0351GMT
