Saudi Arabia’s Ma’aden to Increase Capital for Phosphate Expansion
Saudi Arabian Mining Co. (Ma’aden) plans to raise its capital from SR36.92 billion to SR38.03 billion ($10.1 billion) to enhance its phosphate business. The initiative involves acquiring a 25% stake in Ma’aden Wa’ad Al-Shamal Phosphate Co. (MWSPC) from Mosaic Phosphates B.V., boosting Ma’aden’s ownership in the joint venture to 85%.
Ma’aden’s shareholders are set to meet virtually on December 11 to approve this capital increase, which includes issuing 111 million new shares at SR10 each. In exchange, Mosaic Phosphates will transfer its MWSPC stake to Ma’aden. This move aligns with Ma’aden’s strategic aim to expand in the phosphate sector.
Established in 2014 in Turaif, MWSPC is a joint venture between Ma’aden, Mosaic Co., and Saudi Basic Industries Corp. (SABIC), which will maintain its 15% stake. The newly issued shares will be held by Mosaic Netherlands Holding Co., subject to a three-year lock-up period, with limited transfers starting in the fourth year and full tradability by the fifth year.
This acquisition is expected to enhance Ma’aden’s control over MWSPC, a low-cost, large-scale phosphate producer, and provide access to Mosaic’s marketing rights. The transaction is valued at SR5.62 billion. Ma’aden anticipates improved earnings per share due to operational synergies and efficiencies.
All necessary regulatory approvals have been secured, and a procedural timeline is outlined for shareholders. This step is part of Ma’aden’s commitment to advancing Saudi Arabia’s mining sector, supporting Saudi Vision 2030’s economic diversification and industrial development goals.
In the first half of the year, Ma’aden reported a net profit of SR2 billion, a 160% increase from the previous year, driven by higher sales volumes, particularly in aluminum and gold, and reduced raw material costs.
Ma’aden’s strategic moves reinforce its leadership in the mining industry and its role in Saudi Arabia’s economic diversification, emphasizing mining as a key industrial pillar.
