Saudi Arabia’s mining giant Ma’aden has signed three contracts totaling $922 million with foreign companies to develop its third phosphate fertilizer project. The agreements were announced in a filing to the Saudi stock exchange on Thursday, coinciding with the final day of the Future Minerals Forum in Riyadh.
Ma’aden, majority-owned by the Saudi sovereign wealth fund PIF, accounts for approximately 20% of the global phosphate trade. Saudi Arabia’s high-quality phosphate rock and strong state support for the sector align with the kingdom’s economic diversification goals, providing significant financial backing.
Contract Details
- Ras Al Khair Development:
- A $325 million deal with China National Chemical Engineering Company for construction work in Ras Al Khair, a port town under development in the Eastern Province.
- The project aims to create 100,000 direct and indirect jobs over the next decade, focusing on mineral development and exports.
- Wa’ad Al Shamal Development (First Contract):
- A $363 million agreement with Sinopec Nanjing Engineering and Construction for construction work.
- Wa’ad Al Shamal, located near the Jordanian border, saw its first phase inaugurated in 2018.
- Wa’ad Al Shamal Development (Second Contract):
- A $234 million contract with Turkish firm Tekfen Construction and Installation, also for construction work in Wa’ad Al Shamal.
Phosphate 3 Project
Ma’aden’s Phosphate 3 project is based in Wa’ad Al Shamal and is set to significantly boost phosphate production. Announced in 2016, the mega-complex is designed to add 3 million tonnes per year of phosphate production capacity, with an initial estimated cost of $6.4 billion (SAR 24 billion). While it was initially expected to reach full capacity by 2024, these contracts mark further progress in its development.
Ma’aden’s investments underscore Saudi Arabia’s commitment to becoming a global leader in the mining sector as part of its Vision 2030 economic diversification plan.
