Maaden to boost Waad Al-Shamal fertilizer capacity to 85% by 2021-end: CEO

Mosaed Al Ohali, CEO of Saudi Arabian Mining Co.

Saudi Arabian Mining Co.’s (Maaden) Waad Al-Shamal fertilizer project is expected to reach 85% of capacity by 2021-end from the current 70% and hit full capacity of 3 million tons of fertilizer products by the first quarter of 2022, Reuters reported, citing CEO Mosaed Al Ohali.

“2019 was downside for the market, 2020 more or less a continuation of this and was a challenge for everybody. Looking forward, the market is now more positive than it was and good market fundamentals are driving growth,” he added.

Ohali said several factors were driving a pickup in demand, including growth in Chinese markets and a better outlook for US-China trade ties after the end of Donald Trump’s presidency.

The mining major will focus on reducing its debt, as its debt-to-EBITDA ratio is above seven times, which it aims to reduce to around 2.5 times over the next five-to-seven years.

According to the data available with Argaam, the Waad Al Shamal fertilizer production complex is a joint venture owned 60% by Maaden, 25% by Mosaic Company, and 15% by Saudi Basic Industries Corp. (SABIC).