Mosaic forms phosphate joint venture in Saudi Arabia

Mosaic forms phosphate joint venture in Saudi Arabia

THE Mosaic Co. announced that it 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% 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 highly cost-efficient project is expected to have a production capacity of 3.5 million metric tons of finished phosphate per year. Operations are expected to commence in late 2016.

Under the terms of the agreement, Mosaic will contribute expertise to the design, construction and operations of the new facilities and will acquire a 25% ownership stake.

In connection with its equity share, Mosaic will market approximately 25% 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 as much as $1 billion, funded over a four-year period beginning in 2013.

Volume:85 Issue:33

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