The new company is expected to operate under the name Maaden Base & Precious Metals Company and will be set up as early as March, Abdallah Dabbagh, president of Maaden, told MEED in London on 22 February. Privatisation of the new entity will then need to be approved by Royal Decree. The planned spin-off is part of a comprehensive internal restructuring process at Maaden, which will eventually see all business units being privatised.

Maaden is also preparing to receive by late March the full feasibility study for the $1,500 million Al-Jalamid phosphate project, which is being carried out by a consortium comprising Canada's SNC Lavalinand the US' Jacobs Engineering Group. The team is also carrying out advanced engineering services on the scheme, which is set to produce 11 million tonnes a year (t/y) of phosphate, to be transported via a new railway to a di-ammonium phosphate (DAP) plant at Jubail (MEED 2:1:04).

Evaluation of a full feasibility study carried out by the US' Bechtelfor Maaden and covering the Al-Zabirah bauxite mine and aluminium smelter is due to be completed by the end of April. The Jubail-based smelter is planned to receive bauxite from the Al-Zabirah mine, also via the new railway.

A detailed study on the railway project, which will link the Al-Jalamid and Al-Zabirah mining projects with Riyadh and to the Gulf via the planned east-west rail link, is being drawn up by Canada's Canrail, Systraof France and Saudi Consolidated Engineering Services (Khatib & Alami). A tender for the engineering, procurement and construction (EPC) contract on the estimated $1,500 million minerals railway, which is being handled by the Finance Ministry's Public Investment Fund (PIF), could be launched as early as late summer.

The railway tender will coincide with the launch of tenders for the DAP and smelter projects. Invitations to bid are also expected to be invited later this year for a 1,500-MW power plant, which will fire the smelter, and for dredging works for a new port to be located 90 kilometres north of Jubail at Ras al-Zour.

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