Saudi Arabian Mining Company (Maaden) is planning to increase its capital through a SR5.6bn ($1.5bn) rights issue.

The capital hike will be used to expand the company’s phosphate and gold operations, as well as to continue funding its Aluminium Project.

The proposal will be presented for approval by shareholders at an upcoming extraordinary general meeting, of which the date is yet to be announced. The pricing and number of shares to be issued will also be determined at the meeting.

Maaden, which started out as a gold mine operator in the western areas of the kingdom, has plans to increase gold production from 134,000 ounces a year (o/y) in 2013 to 400,000 o/y by 2015.

Maaden is also developing the industrial city Ras al-Khair, which includes two world-scale joint ventures producing aluminium and fertilisers, and is leading the Waad al-Shamal phosphates city project, where Maaden and its partners plan to start phosphate processing by late 2016.