Reuters reported that Saudi Arabian Mining Company, Maaden, will delay by 3 years the start of production at a planned aluminium smelter after mining giant Rio Tinto Alcan abandoned the project.

It may be pointed out that Rio Tinto Alcan said in December 2008 it had dropped plans to take a 49% stake in the USD 10 billion smelter because of the global financial crisis.

Mr Abdullah Dabbagh CEO of Maaden said that “We are looking for the plant to be in production in 2015.”

He added that the firm remained committed to going ahead with the project but it would now be carried out in phases. Mr Dabbagh further said that “We are making presentations to our board with a new plan. It is going to take place in two or three phases.”

Maaden has said that it could reconsider the size of the smelter in the light of the global financial crisis. The two companies had initially announced plans to start production at the smelter in 2012. Maaden, in which the Saudi government is the largest shareholder, holds the remaining 51% in the capital of AlumCo. It intends to develop a 740,000 tonnes per year aluminium smelter using bauxite from Saudi mines.

Maaden is investing SAR 60 billion in projects including phosphate, bauxite, gold and industrial minerals. The investments are a crucial part of government plans to diversify an economy heavily reliant on oil export income.

(Sourced from Reuters)