Hyundai Engineering & Construction has signed the letter of intent (LOI) with Ma'aden Bauxite and Alumina Company for the $1.5bn aluminum refinery project to be built at the Ras Al Khair industrial complex.
The details on the contract, which was awarded to the Korean company in March, specify that the refinery will have an annual production capacity of 1.8m tons of smelter-grade alumina, and that the project due for completion by the end of 2014.
"The contract includes completing detailed engineering, procurement, construction, pre-commissioning, commissioning assistance, start-up assistance and training services," said a Ma'aden statement posted on the bourse.
The signing of the deal puts a safeguard in place to prevent the occurrence of a breakdown in negotiations. Earlier in the project's tendering phase Fluor Corp. was awarded the contract, but that decision was then subsequently reversed.
Saudi's majority state-owned Ma'aden has a 74.9% share in the fully integrated Ras Al Khair aluminium complex, which will ultimately comprise a bauxite mine at Ba'aitha, an alumina refinery, aluminum smelter and rolling mill. The remaining 25.1% stake in the project is owned by the US Alcoa.
"The government of the Kingdom of Saudi Arabia has set the vision and established the infrastructure to enable the development of the world's largest, lowest cost, fully integrated aluminum industrial complex," said Abdullah Busfar, Vice President of Maaden's Aluminium Strategic Business Unit.
The refinery is part of the second phase of the $10.8 Billion Minerals Industrial City project on the East coast of Saudi Arabia, 60 km North of Jubail, Eastern Province, Saudi Arabia.