The Saudi Arabian Mining Company (Maaden) and the US’ Alcoa have awarded South Korea’s Samsung Engineering the engineering, procurement and construction (EPC) contract for the $100m materials handling package at its $5bn smelter project in Ras al-Zour in Saudi Arabia. 

Samsung were selected after being shortlisted with two other South Korean contractors, STX Heavy Industries and Daelim (MEED 15:4:11).

“Samsung has been selected and contracts will be exchanged shortly,” says a source familiar with the deal. The contract is thought to be worth around $100m.

The project adds to the EPC contract Samsung Engineering picked up for the Maaden/Alcoa 380,000 tonne-a-year (t/y) rolling mill project which it won in February (MEED 18:2:11).

The scope of work for the material handling facilities package includes the construction of silos and other structures for storing raw materials for the smelter. Port facilities will also be constructed as part of the deal.

The 740,000 t/y smelter will be the first facility constructed as part of the Maaden/Alcoa joint venture and come on stream in early 2013. 

In addition to the smelter and rolling mill, a 1.8 million t/y alumina refinery and 4million t/y/ bauxite mine at Al-Baitha will also be developed as part of the integrated complex.

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