JEDDAH: The Saudi Arabian Mining Company (Ma'aden) announced that it has received commitment letters to cover the required $1 billion commercial bank financing for the development of Ma'aden Bauxite and Alumina Company's bauxite mine and alumina refinery. In a statement on the bourse website, the company said the period of the loans will be 16 years and they will be paid in 21 half yearly installments starting from June 30, 2017. The bauxite mine and alumina refinery development, with an approximate cost of $3.605 billion, comprises the second phase of Ma'aden Alcoa joint venture aluminum project. Sixty percent of the total cost of the second phase, approximately $2.163 billion will be financed as follows: $1 billion by the Saudi Arabia Public Investment Fund, $1.003 billion by financial institutions and commercial banks. Further funding of $160 million by the Saudi Industrial Development Fund is currently under evaluation. The remaining $1.442 billion will be financed by the project partners, Ma'aden and Alcoa on a pro-rata basis. The partners will negotiate with the financial institutions and commercial banks to finalize these agreements in the near future. Further announcements regarding these agreements will be made available in due course.
