Alcoa Teams Up for $10.8B Saudi Project

Alcoa and Saudi Arabian Mining (Maaden) are building a $10.8 billion aluminum complex in Saudi Arabia, a report says.
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NEW YORK (

TheStreet

) --

Alcoa

(AA) - Get Report

and

Saudi Arabian Mining (Maaden)

are building a $10.8 billion aluminum complex in Saudi Arabia, targeting the Middle East from 2013, a report says.

Under the deal, the companies will form a joint venture to set up a refinery of 1.8 million tons a year, a smelter of 740,000 tons a year, bauxite mine with an annual capacity of 4 million tons and a rolling mill with a capacity of up to 460,000 tons,

Reuters

reports.

Financing for the project has yet to be obtained, although Madden CEO Abdullah al-Dabbagh said the venture "will go for financing during 2010."

Alcoa CEO Klaus Kleinfeld told

Reuters

the costs of $10.8 billion would be split, with Alcoa and its partners paying 40%, while Maaden is to handle 60%.

A variety of funding options were being considered, Kleinfeld said, when asked whether Alcoa, the aluminum giant, could conduct a capital hike or go for debt.