Fluor and WorleyParsons are meeting contractors to discuss the construction packages for a $2bn alumina refinery project in Saudi Arabia.

The joint venture partners, who were awarded the engineering, procurement, construction and management (EPCM) contract for the facility, being developed by Saudi Arabian Mining Company (Maaden) and the US’ Alcoa, have gone to the market to open up initial discussions with potential candidates for the project.

“Meetings are being organised at the moment,” a source says. “I am not sure that the outcome of the discussions will result in either an open tender or the contract being directly awarded to a specialist contractor.”

The source adds that he believes that whatever the decision, it will be an in-kingdom contractor who will stand the best chance of being selected if they can bid at a low price.

“The client has certain criteria, but is being very mindful of the costs,” the source adds. “So any company wanting to bid has to be very competitive.”

Another source familiar with the project says that he would be surprised if a direct award to a sub-contractor was made.

“The winning contractor for the construction packages will not be announced until the first or second quarter of 2011,” the source says. “It will be very surprising if the contracts are not put out to open tender although it is likely that there will be a pre-selection process.”

The 1.8 million tonnes-a-year alumina refinery will be built next to a 740,000-t/y aluminium smelter at Ras Al-Zour in the kingdom as part of a $10.8bn complex being developed by Maaden and Alcoa. Fluor and WorleyParsons will also provide EPCM services for a 4 million-t/y bauxite mine and Fluor will provide EPCM services for a $1bn rolling mill with a capacity of up to 450,000-t/y.

A source also tells MEED that Fluor will be responsible for the equipment procurement for the rolling mill.

“Fluor is the EPCM contractor so it will be responsible for finding the right technology partner and making a recommendation to the clients,” the source says.

MEED reported in early June that there was some uncertainty regarding who would be responsible for the equipment procurement for the Maaden rolling mill project (MEED 03:06:10).

Maaden holds a 74.9 per cent stake in the aluminium complex, while Alcoa owns the remaining 25.1 per cent.