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The ammonia plant is the first project in the $6.4bln ‘Phosphate 3’ expansion to Ma’aden’s phosphate fertiliser portfolio Photo courtesy Ma'aden website Press Release section
Saudi Arabian Mining Company (Ma'aden), the kingdom's flagship mining firm, is set to go ahead with plans to increase its share capital to SAR 38.03 billion ($10.12 billion) from SAR 36.9 billion to boost its phosphate business.
The adjustment through the issuance of more than 111 million ordinary shares represents a 3.01% increase in the company's share capital.
It is meant to fund Ma'aden's acquisition of Mosaic Phosphates' entire 25% stake in Ma'aden Wa'ad Al Shamal Phosphate Company (MWSPC).
MWSPC is a joint venture investment among the Saudi mining giant, which currently owns 60%, Mosaic and Saudi Basic Industries Corporation.
The new shares to be issued have a nominal value of SAR 10 a piece.
Last April, Ma'aden signed an agreement under which Mosaic will receive 111,012,433 shares of the mining firm in exchange for Mosaic's current 25% stake in MWSPC.
The transaction will increase Ma'aden's stake in MWSPC to 85%.
(Writing by Cleofe Maceda; editing by Seban Scaria)
