Reuters reported that Saudi Arabian Mining Company had signed financing agreements worth USD 320 million with a Saudi government fund to develop the first phase of an aluminium projects in the kingdom with Alcoa.

Saudi Industrial Development Fund, a government institution has agreed to lend Maaden two loans each worth USD 120 million.

The first loan is to its subsidiary Maaden Aluminium Company and the second to Maaden Rolling Mill Company which is JV with Alcoa in which the international aluminium refiner holds a 25.1% stake.

Maaden said that the loans are to be repaid over 6 years in twice yearly installments with repayments starting for the first in February 2015 and for the second in January 2016. The agreements completed financing requirements for the project.

The company said that South Korea's Hyundai Engineering & Construction Company was awarded USD 1.5 billion contract to build the aluminium refinery. The project will have annual production capacity of 1.8 million tonnes of smelter grade alumina and is scheduled to be completed by the end of 2014.

Source - Reuters

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