Strategy in Action: Groundbreaking in Saudi Arabia
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Strategy in Action: Groundbreaking in Saudi Arabia

 
February 10, 2014   |   ShareThis

Prince Abdullah bin Abdul Aziz bin Musaed, who governs the Northern Border region, welcomes guests to the Wa’ad Al Shamal signing ceremony.
On Tuesday, Mosaic took another step forward in our phosphate growth strategy with joint venture partners Ma’aden and SABIC. Officials broke ground for the Wa’ad Al Shamal Industrial Minerals City, a brand-new community in the Kingdom of Saudi Arabia that will soon be home to the project’s phosphate mining operations.

Because Wa’ad Al Shamal represents the first major industrial development in the Kingdom’s northern region, the groundbreaking celebration and signing ceremony was a popular event: approximately 700 dignitaries and guests were in attendance, with news media surrounding the stage for photo opportunities. Mosaic was represented by Bob Lumpkins, Chairman of the Board of Directors; Larry Stranghoener, Executive Vice President and Chief Financial Officer; and Jeff Golwitzer, Bartow General Manager assigned full-time to the project team. 

“The name ‘Wa’ad Al Shamal,’ which means Promise of the North, is fitting for this important project and the opportunities it will create for all of us,” said Stranghoener. “We look forward to expanding our ability to serve customers, and to help the world grow the food it needs.”

Golwitzer, who has been involved in the front-end work completed to date, reports that the project is progressing on time and on budget, with nearly 80 percent of construction bids awarded. What’s surprised him most about the project? “The sheer size of it,” he says. “It’s unfathomable how much work and how much brain power goes into executing a project of this magnitude. Being a part of it, and helping to build something that will be around for generations… it makes me proud to be a Mosaic employee.”

Mosaic’s investment with Ma’aden and SABIC will help ensure we are well-positioned in the global crop nutrient industry. Low-cost phosphate production in Saudi Arabia combined with geographic proximity will improve Mosaic’s access to key agricultural countries, most notably India. Under the terms of the agreement, Mosaic is contributing expertise to the design, construction and operations of the new Ma’aden Phase 2 facilities and has a 25 percent ownership stake.  In return, Mosaic will receive approximately 25 percent of production, which will be targeted for sale outside North America.