Partners to launch Ras al-Zour aluminum financing by May

23 March 2010

Maaden and Alcoa joint venture project aims to raise $7bn

Saudi Arabian Mining Company (Maaden) will launch the financing for its $7bn Ras al-Zour aluminium smelter in by May this year, according to a source close to the project.

The financing is expected to be split between a $1.5bn commercial debt tranche and an additional commercial loan from the Saudi banks, direct loans from the Export-Import Bank of the US, and Saudi government lenders, the Public Investment Fund and Saudi Industrial Development Fund The commercial bank loans will have a tenor of 15 years.

GCC Largest Aluminium smelters
Dubal981,000 t/yUAE
Alba870,000 t/yBahrain
Maaden (proposed) 740,000 t/ySaudi Arabia
Emal700,000 t/yUAE
Qatalum585,000 t/yQatar
Source: MEED

“We are on track to launch the financing for the scheme soon, hopefully around late April or early May,” a source close to the project says.

Maaden is developing the project in a joint venture with US-based aluminium company Alcoa, which will have a 40 per cent stake in the partnership, split equally between itself and other investment partners. Alcoa and its partners will invest $900m over four years.

Local Riyad Bank and the UK’s Standard Chartered are acting as financial advisers to the sponsors on the project.

Once complete, the complex will have a refinery with capacity of 1.8 million tonnes a year (t/y), a 740,000-t/y smelter, and will be linked to a 4 million-t/y bauxite mine at Zubairih in the central Qassim province. The partners also plan to build a steel rolling mill with a capacity of up to 460,000 t/y at Al-Zour.

A MEED Subscription...

Subscribe or upgrade your current package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications