Mosaic firms up Saudi agreement
The Mosaic Co. has entered into a Shareholders’ Agreement with Saudi Arabian Mining Co. (Ma’aden) and Saudi Basic Industries Corp. (SABIC) to participate in integrated phosphate production facilities in the Kingdom of Saudi Arabia. The companies have been working toward the agreement since a Heads of Agreement was signed in March.
Ma’aden, Mosaic and SABIC will own 60, 25 and 15 percent of the joint venture, respectively.
The estimated $7 billion greenfield project, to be known as Wa’ad Al Shamal, or Northern Promise, Phosphate Project, will be built in the northern region of Saudi Arabia at Wa’ad Al-Shammal Minerals Industrial City, and in Ras Al Khair Minerals Industrial City which is located on the east coast of Saudi Arabia. The project is expected to have a production capacity of 3.5 million mt of finished phosphate per year. Operations are expected to commence in late 2016.
Mosaic will contribute expertise to the design, construction and operations of the new facilities and acquire a 25 percent ownership stake. In connection with its equity share, Mosaic will market approximately 25 percent of the joint venture’s product, including phosphate fertilizer and animal feed. Subject to final financing terms, Mosaic’s cash investment is expected to be up to $1 billion, funded over a four-year period beginning in 2013.