Saudi Arabian Mining Company (Maaden) has received bids for the engineering, procurement and construction (EPC) for the sulphur and power & utilities package at the proposed $6bn phosphates mining city at Waad al-Shamal in the north of the kingdom.

The bid submission date for the package was August 5 and Maaden has shortlisted the package so that only two bidders are left in the running.

“Maaden has picked two technology providers for this package, which means the two EPC contractors partnering these two providers are left,” says a Saudi-based source familiar with the scheme. “Maaden is being extremely specific about the technology it will use and this has worked out well for the two remaining bidders.”

The two bidders and their technology providers are:

• GS Engineering & Construction/Outotec (South Korea/Finland)
• SNC Lavalin/MECS (Canada/US)

The packages for the scheme have been staggered across the summer months in order for Maaden to carry out evaluations and make awards. South Korea’s Daelim Industrial was awarded the ammonia package for the scheme in July in a deal worth $823m.

The mining city is being built so Maaden can fully utilise the phosphates from its Al-Khabra mine. The scope of works for the city will include a mining component, as well as eight different processing plants and a utilities and offsites package. The phosphate produced at Al-Khabra is low in heavy metal content and is ideal for use in food production, as well as fertiliser and animal feed. The measured reserves of the Al-Khabra deposit are estimated to be 236 million tonnes.

In March, Maaden announced it was joining forces with the US’ Mosaic and Saudi Basic Industries Corporation (Sabic) to build the phosphates city. Maaden will retain a 60 per cent stake, with Mosaic and Sabic taking a 25 per cent and 15 per cent stake respectively.