Saudi Arabian Mining Company (Maaden) is set to close the financing on the $3.6bn second phase of its aluminium project in early October.

The project, being developed in a joint venture with the US’ Alcoa, will involve the development of a bauxite mine and alumina refinery to form an integrated aluminium production facility with phase one of the scheme, which included an aluminium smelter and rolling mill.

Documentation for the deal has been progressing throughout the summer, despite Ramadan and the long Eid holiday in Saudi Arabia.

Sources close to the deal say they are in the final stages of confirming the financing. A banking group has already been formed and pricing on the $1bn commercial bank tranche of the $3.6bn financing was set in early July (MEED 01:07:11).

The local Riyad Bank, along with the UK’s Standard Chartered, are acting as financial advisers on the deal. The lending group includes most of the Saudi banks lending in riyals, and a few international banks lending in dollars.

In total, the aluminium project will cost about $10.8bn to develop, with funding for the smelter and rolling mill raised in 2010 (MEED 30:11:10).