Saudi Arabian Mining Company (Maaden) is pushing ahead with plans to develop new fertiliser facilities as part of the planned $8bn industrial complex in Waad al-Shamal.

According to industry sources, enquiries are being made with suppliers regarding two contracts related to the development of a diammonium phosphate (DAP) plant at the location.

Suppliers were approached by the Morocco-based engineering company Jesa International with initial enquiries regarding long-lead items for two contracts at the end of August, sources said.

The two contracts for the DAP plant are estimated to have a total value of more than $1bn.

The selection of Australia-based engineering company Worley and Jesa International to execute the engineering, procurement and construction management (EPCM) contract for the DAP facility was announced in January in a stock exchange filing.

The EPCM contract has a value of SR1.043bn ($278m), according to the stock exchange statement.

Under the EPCM contracts, Worley will provide in-kingdom services and Jesa will provide out-of-kingdom services for the design and construction of new process plants in the industrial cities of Waad al-Shamal and Ras al-Khair.

The EPCM contract was signed on 11 January 2023. It has a duration of 42 months, and the project will produce 1.5 million tonnes a year of phosphate fertilisers.

On 16 January, MEED reported that the contract would use an “accelerated schedule”.

Maaden phosphates production

Maaden established a large-scale industrial complex covering more than 440 square kilometres in Waad al-Shamal in November 2018. It was inaugurated by Saudi Arabia’s King Salman bin Abdulaziz al-Saud.

Maaden subsidiary Maaden Waad al-Shamal Phosphate Company (MWSPC) has assets that include a phosphate mine, beneficiation plant, phosphoric acid and sulphuric acid plants, and a power generation unit in Waad al-Shamal.

The company also owns downstream plants in Umm Wual, along with an ammonia plant and its associated DAP, monoammonium phosphate (MAP) and nitrogen phosphorus and potassium (NPK) units in Ras al-Khair.

Maaden owns the majority 60 per cent stake in MWSPC, with the other shareholders in the joint venture being US phosphates and potash producer The Mosaic Company (25 per cent) and Saudi Basic Industries Corporation (15 per cent).

MWSPC has been allocated a budget of $8bn to develop Maaden’s phosphate business in Waad al-Shamal and Ras al-Khair.