The Phosphate Project aims to exploit a phosphate deposit located in the Al Jalamid site and utilise local natural gas and sulphur resources to manufacture Diammonium Phosphate “DAP”. Processing facilities at the Ras Az Zawr have also been designed with the flexibility to produce Monammonium Phosphate “MAP”, should production of MAP be considered more economically viable. DAP produced by the Phosphate Project will be sold primarily into the international markets. It is anticipated that the project will also produce quantities of ammonia and phosphoric acid not required in the production process, which can be exported or sold domestically.
The Phosphate Project will be developed in a joint venture with SABIC , through a limited liability company, Ma'aden Phosphate Company (MPC), incorporated in Saudi Arabia. A Joint Venture Agreement was concluded in 15 September 2007 by Ma'aden and SABIC.
Worley Arabia Limited has been appointed as the Project Management Consultant for the Phosphate Project. They will work closely with MPC, Ma'aden and SABIC to manage the overall implementation and execution of the Phosphate Project.
The Phosphate Project involves the development, design, construction and subsequent operation of two primary sites:
Al Jalamid
The Al Jalamid site comprises a phosphate mine, beneficiation plant and supporting infrastructure and encompasses an area of approx. 50 km². Mine production is expected to average approximately 12Mtpy of ore and beneficiation facilities at Al Jalamid will be scheduled to produce an estimated 5 Mtpy of flotation concentrate on a dry basis. Ma'aden's measured phosphate resources at Al Jalamid are estimated to be 534 Mt. It is proposed to mine 223 Mt for the Phosphate Project over its initial planned life of operations. A substantial amount of industrial infrastructure will be developed at the Al Jalamid site to support mining and beneficiation operations. This includes power plant, potable water production, treatment and distribution, roads and telecommunications.
Ras Az Zawr
The Ras Az Zawr site comprises a plot of land 90km north of Jubail on the coast of the Arabian gulf. A segment of the site is proposed to be used for the construction of the integrated chemical and fertilizer facility and related infrastructure for the Phosphate Project. Phosphate concentrate will be transported by rail from the Al Jalamid beneficiation plant to Ras Az Zawr for processing. The phosphate concentrate will be processed in a fertiliser production facility consisting of a phosphoric acid plant, a sulphuric acid plant, an ammonia plant, a DAP granulation plant, a co-generation plant and desalination plant, and other infrastructure.
It is estimated that the Phosphate Project will produce approximately 3 Mtpy of granular DAP, plus approximately 0.4 Mtpy of excess ammonia. It is also anticipated that the Phosphate Project will generate approximately 0.2 Mtpy of excess phosphoric acid for sales to the domestic market in Saudi Arabia.
The Company has rescheduled the date for initial production, originally envisaged by the end of the fourth quarter of 2010, to the second quarter of 2011 by which time the associated infrastructure and supporting utilities in Ras Az Zawr will be in completed. Commercial production is now expected to commence in the 3rd quarter of 2011. It is a 5.5 billion dollar investment.
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