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19 April 2024

Saudi’s Ma’aden awards $630m contracts

By Staff Writer


Saudi Arabian Mining Company (Ma’aden) awarded $630 million (Dh2.31bn) final contracts separately to two Chinese and Korean firms for the construction of power and desalination as well as beneficiation plants for the world’s largest fully integrated phosphate fertiliser complex in the kingdom.

Abdallah Dabbagh, President and CEO of Ma’aden, signed the contracts separately with Chinese and Korean firms.

Guizhou Hongfu Industry and Commerce Development Company (Hongfu) of China won the $350m (Dh1.28bn) contract for the beneficiation plant that will be located at the phosphate mine site in Al Jalamid in north of the Kingdom.

Hanwha Engineering and Construction Corporation, a Korea company, meanwhile, bagged the power and desalination plant at a total cost of $280m (Dh1.02bn) that will be located at the phosphate processing complex at Ras Az Zawr.

“The signing of these two contracts means now that all major plant contracts have been agreed. Work at the Ras Az Zawr site has already begun with the driving of piles for the sulphuric acid plant and started basic construction of foundations,” Dr Dabbagh said, adding the project is now very much a reality and on track to deliver the first phosphate fertiliser in the last quarter of 2010.

Site mobilisation for the power and desalination plant will commence in January next year followed by construction in May. The plant is expected to be completed and fully operational by the middle of 2010. The power plant consists of 2 x 66 per cent Siemens Condensing Steam Turbines and Generators, with an output of 126.76MW base load and 146.53MW peak load. Depending on final load examination the phosphate project is expected to be a net exporter to the grid of approximately 10MW.

The desalination plant will utilise Entropie Multi-Effect Distillation (MED) and can process up to 40,000 cubic metres of water per day.

The plant will also include storage facilities for desalinated, process and drinking water. Construction on the beneficiation plant at Al Jalamid will commence in April 2008, with completion expected by May 2010.

The beneficiation plant is required to remove calcium and magnesium carbonates from the phosphate deposit run-of-mine ore to produce 4.63 MTPY dry phosphate concentrate suitable for use in the manufacture of phosphoric acid.

The scope of work includes the provision of all professional and technical services, labour, equipment, facilities and materials and all other functional services necessary.

Guizhou Hongfu Industry and Commerce Development Company of China won a $350m (Dh1.28bn) contract, while Hanwha Engineering and Construction Corporation bagged another project for $280m (Dh1.02bn)