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Ma’aden rethinks its strategy for the $6 billion Phosphates city project

Ma’aden awards FEED and reconsiders PMC contracts

Although the PMC contract for the Ma’aden Phosphate city project was intended to be awarded together with the FEED contract to Jacobs, Ma’aden has decided finaly to separate both contracts.

Ma’aden Phosphate Company (MPC) is a joint venture with SABIC in which the Saudi Arabian Mining Company (Ma’aden) owns 70% and SABIC 30%.

The Al Khabra Project, or called Phosphates City project, is located at Waad Al-Shamal in the Umm Wual area,  40 kilometres northeast of Turayf in the Sirhan-Turayf region in the North of Saudi Arabia and wholly owned by Ma’aden.

The greenfield project is located approximately 100 kilometers to the west of the Ma’aden Phosphate Company beneficiation complex.

Other new plants to produce ammonia and phosphate based fertilizers complimenting the industries at Wa’ad Al Shamal will be constructed at Ras Al Khair in the Eastern Province to be near port facilities

Ma’aden is targeting to supply merchant grade phosphoric acid to go into the global markets of the fertilizer, food and animal feed industries.

Wa’ad Al-Shimal will take advantage of rich phosphate deposits located at Ma’aden’s Al-Khabra mine, processing the ore into diammonium phosphate (DAP or P2O5) fertilizer for export to international markets.

The project envisages an open pit mine and treatment process adding close to 1.5 million t/y P2O5 to Ma’aden’s phosphate capacity.

The project would mainly use existing port, rail and infrastructure developments put in place by the Saudi Arabia Government.

The feasibility study confirmed the viability of the project to supply highly demanded phosphate intermediate products.

The Phosphate city project will include:

 – Phosphoric acid (MGA) production

 – Purified phosphoric acid

 – Sodium tri-poly-phosphate

 – Mono-calcium phosphate

 – Di-calcium phosphate.

 

These new products will help Ma’aden‘s increase its phosphate product mix.

The project is based on measured resources at Al Khabra mining license which stand at 236 million metric tons grading at 17% to 19.6% P2O5.

The deposit has very low metal content, ensuring that the resulting phosphoric acid will be of the highest quality, suitable for use in the food and feed industries.

The Umm Wual area contains further JORC compliant indicated resources of 450 million metric tons as well as significant further potential resources which Ma’aden is continuing exploration activities in the area to expand that resource.

The project would principally utilize existing port, rail and infrastructure developments put in place by the Saudi government as part of a national program of infrastructure enhancement.

The project represents $5.6 billion capital expenditure in phosphate mining and processing facilities is part of Ma’aden’s commitment to diversify Saudi Arabia activities in the downstream sector.

Ma’aden awards the FEED to Jacobs Engineering

May, 2012 – Ma’aden has awarded the front-end engineering and design (FEED) contract of its $5.6 billion  at Wa’ad Al-Shimal to U.S. company Jacobs Engineering Group Inc. (Jacobs).

The scope of the work of the FEED contract covers $4 billion capital expenditure out of the whole project, including:

 – Mining facilities

 – Eight processing plants

 – Utilities and offsite package

Jacobs FEED contract represents 400,000 man hours.

In addition the $4 billion facilities covered by the FEED contract awarded to Jacobs, the overall project requires:

 – A power distribution plant

 – Associated infrastructure.1

Following the engineering, procurement and construction (EPC) of the project is expected to be completed by 2016.

Maaden in brief

Ma’aden’s Phosphate business currently consists of Ma’aden Phosphate Company, a joint venture with SABIC in which Ma’aden owns 70% and SABIC 30%, and the Al Khabra Project which is wholly owned by Ma’aden.

Ma’aden Phosphate Company (MPC) exploits the phosphate deposit at Al Jalamid in the North of Saudi Arabia and utilises local natural gas and sulphur resources to manufacture Diammonium Phosphate (DAP) at processing facilities at Ras Al Khair on the Arabian Gulf coast.

These facilities have the flexibility to also produce Monammonium Phosphate (MAP).

The DAP produced by MPC is sold into the global markets.

Surplus ammonia from the operation is exported or sold domestically. MPC commenced initial production of DAP on the 17th June 2011.

WorleyParsons which has a long history of co-operation in mining with Ma’aden to produce fertilzer may take this opportunity to come back in the expansion of the Al-Khabra phosphates.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

1 Comment to “Ma’aden rethinks its strategy for the $6 billion Phosphates city project”

  1. We intest to j v to produce Uria ammoni dap plants. Purchesd usa to be shift to country l n g to. Abel to meet. Production with low. Price. Pl helip g vittal c md. richimen group. Hydrabod. India.

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