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Dammam 26-26-2019 SPA
The Saudi Arabian Mining Company (Ma’aden) today announced that it has signed an amended joint venture agreement with Alcoa Corporation, which includes Alcoa Corporation’s waiver of its 25.1% stake in Ma’aden Rolling Mill and Sheet Metal Sheet Factory for Metals without charge, Alcoa Corporation of the future commitments of the lenders in the company Ma’aden rolling, thus becoming the ownership of the company in the company of metals rolling mill 100%.
“This deal will provide additional flexibility to minerals in the management of its industrial investments and will strengthen the relationship with Alcoa in joint ventures in mining, refining, smelting and casting,” said David Dane Davis Chief Executive Officer.
This agreement follows the recommendation of Ma’aden’s Board of Directors, at its meeting held on 23/6/1440 H, corresponding to 26/6/2019, to increase the capital of Maaden by transferring the debt to the Public Investment Fund of US $ 796,370,000 from Ma’aden to the rolling mill The Ma’aden Board of Directors’ recommendation was conditional on taking regulatory approvals from the competent authorities and the extraordinary General Assembly of Ma’aden.
Ma’aden aims to improve its liquidity ratios, enhance its credit standing, enable its investment objectives, and pursue its strategy towards 2025 without any financial obligations or contributions to shareholders.
On the other hand, Alcoa Corporation will retain its investments in the Kingdom with Ma’aden, with its 25.1% stake in Ma’aden Aluminum, which produces aluminum from its own smelters. Alcoa Corporation will retain its 25.1% stake in Ma’aden Bauxite and Alumina, Bauxite produces alumina from its alumina refinery. Ma’aden Aluminum and Bauxite and Alumina Metals are two parts of the highly efficient aluminum composite complex, the first of its kind in the world located in Ras Al Khair Industrial City.
It is noteworthy that Maaden Rolling Company, which started its production activity since 2014, is the first in the Middle East to produce aluminum sheets used in food and beverage boxes as well as aluminum sheets used in the automotive industry. It also includes specialized facilities for the recycling of pre-used aluminum with a capacity of 120 thousand tons Metric and will continue to be a highly efficient integrated compound for aluminum production.
