Several international companies have expressed interest in the SR12 billion Al-Zubairah bauxite project in the Eastern Province, according to the Saudi Arabian Mining Company (Maaden).
“We will take a decision on implementation of the project when we have studied the offers these companies tender,” the state-owned company said.
The announcement comes after a delegation, led by Maaden Chairman Dr Abdullah Al-Dabbagh, held a series of talks with foreign companies to discuss operating large industrial complexes specializing in aluminium production. “The aim of the talks was to find a strategic partner for the bauxite project, which involves establishing a smelter and refinery for aluminium and alumina,” a company statement said.
Maaden has already signed a financial consultancy agreement with Riyadh Bank and a joint Australian and New Zealand Banking Group to conduct a detailed feasibility study of Al-Zubairah project. Preliminary studies have proved that the area between Qasim and Hail in the north of the Kingdom has bauxite deposits of over 126 million tons, 57% of which is alumina, Al-Dabbagh said. The study is scheduled for completion in mid-2004.
Maaden plans to extract 3.4 million tons of bauxite annually for the production of 620,000 tons of aluminium per year. Maaden said that talks with the international companies focused on investment prospects in mineral industries and the transfer of advanced technology.
The Kingdom of Saudi Arabia is also looking for investors to exploit its vast phosphate resources in the north. According to a study prepared by the Royal Commission for Jubail and Yanbu, the country’s phosphate reserves are estimated at 110 million tons.
Maaden has signed an agreement with Saudi Oger to establish a joint company to develop phosphate mines and transport raw phosphate by rail. The project is predicted to cost between $800 million to $2 billion. Maaden, which is owned by the Ministry of Petroleum and Mineral Resources, was established in March 1997, and is currently being considered for privatisation.
Source: SPA
