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Write a essay that discusses a deal between Maaden and Daelim that will cost $41 million
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##Executive Summary
The text discusses a deal between Maaden and Daelim that will cost $41 million. The deal is for a petrochemical project in Jubail and will be completed in the third quarter of 2012.
#$41m Deal Signed Between Maaden and Daelim: Analysis Report
“Saudi Arabian Mining Co (Maaden) said preliminary work on a petrochemical project in Jubail with South Korea’s Daelim Industrial Co will cost about $41 million. In end-December, both firms signed a deal to launch the Jubail project, a petrochemical joint venture with Sahara Petrochemicals Co” (“Maaden, Daelim project to cost $41m”). Since its formation in March 1997, Maaden had concentrated on its five gold mines in Saudi Arabia. The deal with Daelim is another step of Maaden to facilitate its aluminum project. In recent years Maaden has been increasing its phosphate and aluminum projects.” The joint venture, expected to have a capacity of 250,000 tonnes per year (tpy) of caustic soda and 300,000 tpy of ethylene dichloride, is due to be completed in the third quarter of 2012” (“Maaden, Daelim project to cost $41m”).
Caustic soda (sodium hydroxide) is used in the conversion process of alumina.” 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 alumina refinery, aluminium smelter, rolling mill and related infrastructure for the Aluminium Complex” (Maaden). Maaden had also signed a deal with Sabic in 2007.The two initiatives by Maaden will help develop its presence in the global markets. Also, these developments will assist the development of fertilizer industry in Saudi Arabia. It is an important step to integrate various industries in Saudi Arabia and link their developments together. “When the complex goes on-stream its world market share of phosphate fertilizer will be 20-25%” (Sabic). “In addition, since its formation, Ma’aden (through the Ministry of Petroleum & Mineral Resources) has collaborated with the Government and local legislators to develop a regulatory framework for the governance of the mining industry in Saudi Arabia”. (Maaden)
Works cited
“Maaden”. maaden.com. Ma’aden, n.p, n.d. Web. 2010.
“Maaden, Daelim project to cost $41m ”. tradearabia.com. Trade Arabia, n.p, 2010. Web.