Ma’aden Wa’ad Al-Shamal Phosphate Co. (MWSPC) has signed financing facilities for long-term project finance loans with a consortium of 20 financial institutions for SR18.9 billion (about $5 billion) to be used in developing MWSPC’s phosphate project now under construction at sites in Wa’ad Al Shamal in northern Saudi Arabia and the existing Ras Al Khair Industrial City. MWSPC is a joint venture company formed by the Saudi Arabian Mining Co. (Ma’aden) to develop the project. Ownership of the joint venture is 60% Ma’aden, 25% The Mosaic Company, and 15% Saudi Basic Industries Corp. (SABIC).

Capital cost to develop the MWSPC project is estimated at about SR28 billion ($7.5 billion).

The new complex will be one of the largest integrated phosphate facilities in the world and will approximately double Ma’aden’s existing phosphate production while adding important new products to its production capabilities.

The project includes new mining and processing plants at Wa’ad Al Shammal and further processing plants at Ras Al Khair. The two sites will be linked by Saudi Arabia’s North-South Railway. Production is expected to begin in late 2016.

The Wa’ad Al Shammal plants will have total production capacity of about 16 million mt/y. Other new plants to produce ammonia-and phosphate-based fertilizers are being constructed at Ras Al Khair to be near port facilities.

Financial institutions participating in the funding include Saudi Arabia’s Public Investment Fund, financial institutions from both inside and outside of Saudi Arabia, and two Korean export credit agencies, which are participating in the financing in support of Korean contractors participating in the construction of the project. Funding has also been obtained from the Islamic Development Bank.