Maaden seeks Dh29bn to fund aluminium plant

Saudi Arabian Mining Company (Maaden) will borrow about SAR30 billion (Dh29.3bn) in the third quarter of 2009 to fund a planned aluminium plant in the Kingdom, its CEO said.

The loan will be "international and in conformity with Islamic regulations", Abdullah Al Dabbagh told Kuwait's Al Rai newspaper.

The funds will help finance a planned 740,000 tonnes per year aluminium smelter, that will be jointly developed in the Kingdom with Rio Tinto at a cost of $10.55bn. "We will not need any financing for our projects until the end of the year," he said without giving more details.

Rio Tinto Alcan will hold 49 per cent of AlumCo, the joint venture company that will operate the plant.

The estimated cost of the project has risen 40 per cent due to the rise in contracting costs as well as domestic rise in the cost of labour and also to a 14 per cent increase in the planned plant's production capacity, Maaden said last week.