The Saudi Arabian Mining Company ‘Ma'aden’ has signed a SR25.5 million [U.S. $6.8 million] contract with a consortium of SNC-Lavalin Europe B.V. and Jacobs' Delta Catalytic Saudi Arabia Ltd for the provision of advanced engineering services for construction of its Jalamid phosphate mining project and its Jubail complex for fertilizer production. Ma’aden President Dr Abdallah Al-Dabbagh reports that feasibility studies have established the viability of the Jalamid mine to produce 4.5 million tons per year of phosphate concentrate, and of an integrated fertilizer complex at Ras Az-Zawr north of Jubail Industrial City to produce 2.9 million tons per year of diammonium phosphate (DAP), for use as fertilizer. Molten sulfur and natural gas from within the Kingdom would be used as feedstock, together with the captive phosphate rock, making it a highly competitive integrated production facility within easy reach of the growing Asian markets.
The proposed railway line linking the Jalamid mine to the Jubail fertilizer complex is part of a larger infrastructure development effort spearheaded by the government-owned Public Investment Fund (PIF). Ma'aden has committed U.S. $500 million in interest-free loans toward the construction of the railroad to guarantee favorable terms for transportation of the phosphate concentrate.