March 19, 2013
/PRNewswire/ -- The Mosaic Company (NYSE: MOS) today announced that it has entered into a Heads of Agreement with Ma'aden and the Saudi Basic Industries Corporation (SABIC) under which the companies intend to enter a joint venture to develop integrated phosphate production facilities in the
Kingdom of Saudi Arabia
. The parties contemplate that Ma'aden, Mosaic and SABIC would own 60, 25 and 15 percent of the joint venture, respectively.
greenfield project, to be known as Wa'ad Al Shammal Phosphate Project, would be built in the northern region of
at Wa'ad Al Shammal Minerals Industrial City, and would include further expansion of processing plants in Ras Al Khair Minerals Industrial City which is located on the east coast of
. The joint venture
would develop a mine and chemical complexes that would produce phosphate fertilizers, animal feed, food grade purified phosphoric acid and sodium tripolyphosphate for sale to customers worldwide. The highly cost-efficient facilities are expected to have a production capacity of approximately 3.5 million tonnes of finished product per year. Operations are expected to commence in late 2016.
Under the terms of the agreement, Mosaic would 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 would market approximately 25 percent of the production of the joint venture. Subject to final financing terms, Mosaic's cash investment would be up to
, funded over a four-year period beginning in 2013.
"Our joint venture with Ma'aden holds great promise for Mosaic, and we expect it to be an excellent complement to our phosphate business in
," said Mosaic President and Chief Executive Officer
. "This cost-effective phosphate project would enable Mosaic to further diversify our sources of phosphates and gives us improved access to key agricultural countries. Our growing global reach further enables us to fulfill Mosaic's mission, to help the world grow the food it needs, while delivering compelling shareholder value."
Facts about the project:
About The Mosaic Company
- Phosphate production at the Ma'aden project would benefit from the availability of key raw materials which are available locally from sources within Saudi Arabia.
- The project would provide logistical benefits to Mosaic, enabling it to ship phosphates to important phosphate geographies.
- The parties expect to enter into a definitive shareholders agreement during the first half of 2013.
The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients. Mosaic is a single source provider of phosphate and potash fertilizers and feed ingredients for the global agriculture industry. More information on the Company is available at
Ma'aden is a leading mining and metals company in the
Kingdom of Saudi Arabia
, with a diverse portfolio of mineral assets at various stages of development including exploration, development and production. Ma'aden has a broad commodity focus spanning gold, phosphate, aluminium, magnesia, low-grade bauxite, industrial minerals, and is continually assessing opportunities to enter into new commodities that demonstrate strong long-term fundamentals and opportunities for growth. Ma'aden's objective is to become a world class diversified mining and minerals company, and to enhance overall value for its shareholders. Ma'aden's mission is to be a profitable, publicly owned, international mining company, while maintaining the utmost concern for human resources, health, safety, environmental and social issues. For more information please visit
Saudi Basic Industries Corporation (SABIC) ranks among the world's top petrochemical companies. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.