A subsidiary of state-run Saudi Arabian Mining Co (Ma'aden) signed a five-year contract on Tuesday to buy calcined petroleum coke from a Saudi company for its aluminum smelter facility in Ras Al Khair, the Saudi state news agency (SPA) reported.
Ma'aden Aluminium Company will receive 100,000 ton a year of the material, used in the manufacture of aluminum, once commercial production starts at the end of 2024 from a facility owned by Saudi Calcined Petroleum Coke Company (SCPCC).
The contract, worth $40 million a year, is part of a plan by Ma'aden, the Gulf's largest miner, to secure 320,000 ton a year of calcined petroleum coke from domestic sources.
Saudi Arabia, one of the world's biggest oil producers, has been seeking to expand local industries as part of a plan known as Vision 2030 that aims to wean the kingdom off reliance on revenues from crude exports.
Ma'aden Chief Executive Abdulaziz Al-Harbi said the deal aimed "to develop the local mining sector, in line with the Saudi Vision 2030, to be an essential source in the national economy," the agency reported.
Ma'aden and SCPCC could not immediately be reached for comment after normal office hours.