Rio, Maaden Aluminium Complex Project Expected by August

Saudi Arabian state-owned Mining Co. (Maaden) said yesterday that it expects to sign a deal with Rio Tinto by August for a $7.5 billion aluminium complex including a smelter, an alumina refinery and a power plant. Maaden and Rio Tinto Alcan agreed last year to partner in one of the world's largest aluminium projects in Saudi Arabia. The 670,000tpy smelter should cost about $7.5 billion versus earlier estimate at $7 billion. Maaden plans to raise $2.47 billion plus a premium, in an initial public offering this year in Saudi Arabia to finance the project, which will be still awaiting approval from Saudi Arabia's Capital Markets Authority, the company will also sell a 10% stake to two state funds. Maaden, mainly dealing with gold production, is developing projects such as the 44 billion riyals phosphate mining. Source said that Maaden had appointed banks to arrange a $2.3 billion syndicated loan for the venture, and Saudi Basic Industries Corp 2010.SE (SABIC) will inject 17 billion riyals into the project. COPYRIGHT All rights reserved. The copying, republication or redistribution of WAM News Content, including by framing or similar means, is expressly prohibited without the prior written consent of WAM.