The Saudi Arabian mining joint venture of Ma'aden-Alcoa announced plans to create the first fully integrated aluminium smelter and food grade sheet rolling mill in the kingdom. There are sixteen financial institutions which will provide the $1.9 billion funding required for the project.
The bank financing agreement was signed in part by Maaden Aluminium Company and in part by Maaden Rolling Company. The two are co owned by Maaden and Alcoa. The interim president of the smelting and rolling mill companies and vice president of the Maaden Aluminum Smelter Unit, Abdullah Busfar said that the project involved participation of Saudi Arabian banks as well as international banks.
The banks were not all identified. The Saudi Public Investment Fund and the Saudi Industrial Development Fund will also provide $2.6 billion in financing for the first phase. Abdullah Busfar said that the joint venture agreement was signed in December last year and the construction began on October 24.
Ken Wisnoski, Alcoa’s president of Global Primary Products Growth said that they were pleased that the financing on very attractive terms for the smelter and the rolling mill was achieved swiftly during a challenging period in the global financial markets.