Saudi Arabian Mining Company (Ma'aden) has taken a significant step towards expanding its phosphate fertiliser production capacity. The company recently awarded three major construction contracts worth a combined $922 million to Chinese and Turkish firms for its third phosphate fertiliser project.

This ambitious undertaking, known as "Phosphate 3," is expected to add a substantial 3 million tonnes per annum to Ma'aden's existing production capacity. The project's total estimated cost was pegged at SAR 24 billion (approximately $6.4 billion) back in 2016, with full operational capacity initially slated for 2024.

The awarded contracts encompass crucial construction work at two key locations: Ras Al Khair and Wa’ad Al Shamal.

One contract for general construction at the Ras Al Khair site was awarded to a branch of China National Chemical Engineering Company (CNCEC) worth $325 million for general construction at this site.

Two contracts were awarded at the Wa’ad Al Shamal site- $363 million to a unit of Sinopec Nanjing Engineering & Construction and $234 million to Turkey's Tekfen Construction and Installation Company. Sinopec was awarded with the contract for general construction work related to Sulphur, Phosphoric Acid, and other off-site facilities.

Whereas Tekfen Construction will facilitate further general construction work at the sites.

This project holds immense strategic importance for Saudi Arabia. By expanding its phosphate fertiliser production capacity, Ma'aden aims to strengthen the country's position as a global leader in the agricultural sector. Increased fertiliser production will not only enhance domestic agricultural output but also bolster Saudi Arabia's exports, contributing significantly to economic diversification efforts.

Furthermore, the project is expected to create numerous job opportunities, both during the construction phase and upon full operationalization. This will contribute to the development of a skilled workforce in the mining and manufacturing sectors within the Kingdom.

The awarding of these major contracts marks a crucial milestone in the "Phosphate 3" project. It signals Ma'aden's commitment to executing this ambitious undertaking efficiently and effectively. As construction progresses, the project is poised to deliver substantial economic and social benefits to Saudi Arabia in the years to come.

Ma'aden is the largest mining company in Saudi Arabia. It is a state-owned company that plays a crucial role in the country's economic diversification efforts, moving beyond oil dependence. Ma'aden focuses on the exploration and development of various mineral resources, including gold, phosphate, aluminum, and copper.

The company is involved in various mining and processing operations across the Kingdom and is actively expanding its operations to meet growing global demand for these essential commodities.