Replacing oil with minerals: Saudi Ma'aden has $1.5 billion worth of ambitions up its sleeve
Saudi Arabian Mining Co will seek shareholder approval for a SAR5.6 billion ($1.49 billion) rights issue to help to fund its expansion plans, the company said on Thursday.
The company, better known as Ma’aden, intends to use the money to expand its phosphate and gold operations, as well as increase funding for its aluminium business, it said in a bourse filing, adding that a date for the shareholder vote would be announced later.
Ma’aden is in the middle of an extensive expansion through its Waad al-Shamal project in the north of the kingdom. The $9 billion scheme will include a phosphate mine, several major processing facilities, smaller downstream factories and a residential area.
The project will have production capacity of 16 million tonnes a year of phosphate concentrate, sulphuric acid, phosphoric acid, as well as plants to produce calcium monophosphate and calcium diphosphate, Ma’aden has said. Phosphate production is expected to start in late 2016.
Banking sources said that HSBC’s Saudi Arabian arm will advise on the rights issue. Its mandate has been in place for some but it hasn’t always clear whether the capital increase would go ahead, two banking sources in the kingdom said.
The mandate was part of HSBC’s role in arranging wider financing for the Waad al-Shamal project, one source said.
Ma’aden could not be immediately reached for comment on the advisory mandate and HSBC declined to comment.
Ma’aden has already secured a $4.2 billion loan package from commercial banks and export credit agencies to fund the construction at Waad al-Shamal, which loosely translates as Northern Promise.
Two Saudi government funds – the Public Investment Fund and Saudi Industrial Development Fund – are also providing funds for the project.
- What will the effect of losing the World Cup be on Qatar? 'Very small' says study
- 'This is Lebanon': why water taps are drying out
- A two-way street: an inside look into the monumental losses brought to the US economy due to Iranian sanctions
- Reconsidering the fork and knife hegemony: how cultural intelligence can land you the job of your dreams
- Revealed: the top ten paid individuals in the UAE
- Replacing oil? Ma'aden signs $5 billion dear worth of phosphate agreements
- American Firm to own 25% of Giant Saudi Phosphate Joint Venture
- Saudi Arabian Mining Company awards $5.7 million contract for phosphate project
- Ma’aden and Sabic sign strategic partnership agreement
- SNC-Lavalin wins $9.4 million feasibility study contract for Saudi phosphate project