The Saudi Arabian Mining Company (Maaden) and the US’ Alcoa have shortlisted three South Korean contractors for the $100m materials handling package at their $5bn smelter project in Ras al-Zour in Saudi Arabia.  

STX Heavy Industries, Daelim and Samsung Engineering are understood to be the three lowest bidders for the engineering, procurement and construction (EPC) contract.

“It is close, but I think that STX is the lowest,” says a source familiar with the project. “Although it seems to be the case that with the Maaden project, it is not always the case that the lowest contractor is selected.”  

The source is referring to Maaden/Alcoa’s 380,000 tonne-a-year (t/y) rolling mill project where Samsung Engineering was selected despite Hanwha Engineering & Construction submitting a lower bid for the project (MEED 18:2:11).

The scope of work for the project 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.  

As well as 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.