What companies make up the Saudi Chemical Company Limited, and what role does it play in explosives production?

The company operates within two sectors: one focused on the civil and military explosives and its solutions, and it is a major player in the country’s mining, oil and gas exploration, infrastructure, and cement sectors.   Under the explosives sector, we have two companies: Saudi Chemical Company Limited (SCCL) and Suez International Nitrate Company (SINCO). We are one of the only two explosive producers in KSA, leading in market share with a production capacity exceeding 120,000 t/y of explosives. We also manufacture over 10 million units of non-electronic detonators yearly to meet growing demand. SINCO, in Egypt, adds to the company’s capabilities, producing around 80,000 t/y of ammonium nitrate used primarily as raw material for manufacturing explosives, which ensures the security of supply for (SCCL) primary feedstock. 

Over the past five decades, SCCL has expanded its footprint with three state-of-the-art production facilities for civil explosives across the kingdom. The first, built in Riyadh in the 1980s, supports central Saudi projects. A second plant, in Dahaban near Jeddah, supplies the western and southern regions, where mountain and rock-cutting projects are prevalent. The newest facility in the north focuses primarily on Ma’aden’s phosphate operations. Additionally, due to strict transportation regulations, SCCL has established strategically placed storage facilities across the country to ensure the safe and timely distribution of products.

How is Saudi Chemical Company supporting new projects like Khnaiguiyah?

The Ajlan & Bros and Moxico Resources recently won the first auction for a new mining site, marking an exciting collaboration in Saudi Arabia’s mining sector. We have signed an MoU with them to supply explosives, offer blasting services, and provide consulting expertise. We are optimistic about their success in this project, hoping it will inspire other investors to follow similar paths.

What led Saudi Chemical to choose Dyno Nobel as a partner for this ammonium nitrate and nitric acid production project?

We are developing local ammonium nitrate and nitric acid production facilities, both crucial for mining and downstream industries. We chose Dyno Nobel, a global leader in explosives and ammonium nitrate products, as our technical partner after a thorough screening and selection process. Their international expertise, strong market knowledge, and technology make them the ideal candidate for this ambitious project. 

SCCL obtained a gas-allocation letter from the Ministry of Energy to support this strategic project. Together with our internal and external allies, we have completed feasibility and financial planning, secured a site in Ras Al Khair near Jubail, and signed a gas supply agreement with Aramco. The front-end engineering phase is set to begin, by Q1 2025. The planned facility will produce 300,000 t/y of ammonium nitrate and 440,000 t/y of nitric acid, significantly strengthening the local supply chain. 

What is the focus of Saudi Chemical’s current collaboration with Orica and Barrick?

We are also collaborating with Orica on a project for the Ma'aden-Barrick mine, where we are addressing specific site challenges through a tailored solution. We aim to conduct an initial trial in November 2024, and if successful, it could serve as a model for other mines facing similar challenges. 

In addition to our technical solutions, we provide training for industry stakeholders, including the police and security workforce and emerging companies in the blasting sector. Saudi Chemical Company Limited is authorized to offer certification programs, empowering new professionals to work safely and effectively in this field.

What role will Saudi Chemical play in Saudi Arabia’s mining sector transformation?

In KSA, while early exploration in the 1930s focused on gold and silver, real progress did not take place until the 1960s, when a framework for mineral resource management was established. In 1972, Saudi Chemical Company entered the mining scene, and the industry gained momentum in 1997 with new developments and the founding of Ma'aden, marking the beginning of a more robust mining sector. Today, the mining industry in Saudi Arabia is entering a new era under Vision 2030 - and it is a central pillar of this vision, diversifying the economy and reducing reliance on oil, moving from traditional methods toward a more modern, efficient approach.

The goal is clear: positioning KSA as a global mineral hub with sustainable and substantial industry growth. This transformation is an opportunity for Saudi Chemical Company’s explosives sector, given that mining simply cannot happen without explosives. Our expertise in explosives, a critical component in mining, places us as a key partner in this expanding market. Additionally, our ongoing projects to secure ammonium nitrate supply ensure we are well-equipped to meet the growing demand from investors and support the industry's long-term growth trajectory.