JEDDAH: Saudi Arabian Mining Co. (Ma'aden) reported a fourth-quarter loss. The net loss was SR64.5 million ($17.2 million), compared with a profit of SR333.8 million a year earlier, Ma'aden said in a statement on the Saudi bourse website Wednesday. A provision of SR70 million has been set aside in the fourth quarter after recalculating the Zakat Islamic tax components, Ma'aden said in the statement. Profit in the fourth quarter of 2009 included an exceptional SR300 million paid by New York-based Alcoa Inc. for an aluminum partnership, the company said. "High administration costs due to the company's business expansion" also added to the loss, according to the statement. Ma'aden, whose main focus is on mining gold, is adding three new business lines, including aluminum and phosphate, to tap rising world demand for chemicals used in agriculture and the lightweight metal used to make beverage cans and aircraft. A 75-25 joint venture between Ma'aden and Alcoa obtained loans in November and December totaling SR15.1 billion to finance part of the SR28.1 billion first phase of its aluminum industrial complex in Ras Al Zour. That phase, including an aluminum smelter and a can-sheet rolling mill, is due to start production in the fourth quarter of 2013. Ma'aden Phosphate Co., a 70-30 joint venture between Ma'aden and Saudi Basic Industries Corp., the world's largest petrochemical maker, will start commercial production in the third quarter, Ma'aden said on Nov. 24. The SR20.6 billion project will produce 2.9 million tons of diammonium phosphate fertilizer a year. A 50-50 joint venture between Ma'aden and Sahara Petrochemical Co. to produce caustic soda and ethylene di-chloride obtained a SR900 million loan in November. Construction of the project will be completed in the fourth quarter of 2012, the two companies said on Nov. 30. Full-year loss per share was SR0.01, compared with earnings of SR0.43 a share in 2009, Ma'aden said. During the quarter, Alcoa entered into a $1.9 billion financing deal involving its joint ventures with Ma'aden. The deal calls for joint ventures Ma'aden Aluminum Co. and Ma'aden Rolling Co. to avail the loan to start the first fully integrated aluminum smelter and food-grade can-sheet rolling mill in the Middle East. Investments in the Gulf's aluminum industry are currently estimated at $30 billion, and could reach as much as $55billion by 2020 due to upcoming smelter expansions and new projects. A fully-integrated aluminum industrial complex being built as a JV between Alcoa and Ma'aden alone involves a capital investment of about $10.5billion.
