Saudi Arabian Mining Co. (Ma'aden) said Sunday it signed with 13 local and international banks a SR3.7 billion ($991.5 million) facility for the second phase of its aluminum project. The financing, signed by Ma'aden's subsidiary Ma'aden Bauxite and Alumina Company, is for the construction of the second phase of Ma'aden and Alcoa Inc. 's $10.8 billion integrated smelter and rolling mill complex, the firm said in a bourse statement. "The loans will be paid in 21 semiannual installments... and will be for the period of 16 years. Financing agreements for the remaining SR4.35 billion will be completed later with Public Investment Fund and Saudi Industrial Development Fund," the statement said. The total cost of the second phase of the aluminum project is estimated to be SR13.4 billion, of which SR5.4 billion will be financed by the project partners on a pro-rata basis, it added. The lending banks include National Commercial Bank, Samba Financial Group, Alinma Bank, Arab National Bank, SABB Bank, Bank Aljazira and Saudi Hollandi Bank, as well as Saudi Investment Bank, Emirates Bank and Export Development Canada, Maaden said in an emailed statement. In addition to the smelter and rolling mill, the second phase of the joint venture will include a bauxite mine with an initial capacity of 4 million metric tons per year and an alumina refinery with an initial capacity of 1.8 million metric tons per year. Ma'aden Bauxite and Alumina Company is 74.9 percent owned by Ma'aden and 25.1 percent owned by Alcoa.
