Alcan's Saudi partner plans $2.4 billion IPO

By Souhail Karam

JEDDAH (Reuters) - Saudi Arabian Mining Co (Maaden), a state-owned partner in an aluminum venture with Canada's Alcan Inc AL.TO, said it planned to raise as much as 9 billion riyals ($2.4 billion) in a share sale this year.

Alcan and Maaden agreed in April to develop what would be one of the world's largest aluminum-making projects at a cost of $7 billion. That includes a smelter, an alumina refinery and a power station.

Maaden plans to sell 40 percent of the company in an initial public offering -- possibly before October -- and another 10 percent to two Saudi state funds, Maaden Chief Executive Officer Abdullah Dabbagh told Reuters in the Saudi city of Jeddah on the sidelines of an investment conference on Monday.

"This IPO will be the last link in the chain ... The financing will be complete," Dabbagh said.

The share sale, on which JPMorgan Chase & Co (JPM.N: Quote, Profile, Research, Stock Buzz) was advising, was initially planned for last year, and put at between $1.9 billion and $2.5 billion.

Maaden, which generates most of its revenue from gold production, is developing projects -- including phosphate mining -- worth about 44 billion riyals, as the world's largest oil exporter seeks to diversify its economy from energy.

The phosphate venture with state-controlled Saudi Basic Industries Corp 2010.SE will cost about 17 billion riyals.

Maaden is looking for more projects, Dabbagh said.