Alcoa (AA), Ma'aden Break Ground in Saudi Arabia

The joint venture between Alcoa (NYSE:AA) and Ma’aden has officially launched as the companies broke ground at its rolling mill in Ras Az Zawr, Saudi Arabia, according to the two firms.

This is just one portion of the $10.8 billion joint venture, which also includes a bauxite mine, an alumina refinery and an aluminum smelter on eastern coast of Saudi Arabia.

Alcoa Chairman and CEO Klaus Kleinfeld in a statement, “Demand for high-quality rolled aluminum products is strong everywhere in the world – especially here in the Middle East. The potential for all elements of this project is immense, and we are making swift progress to capture the opportunities.”

Alcoa has a 25.1 percent stake in the joint venture with the right to grow that to 40 percent if it chooses.

Alcoa was trading at $16.95, gaining $0.32, or 1.89 percent, as of 2:45 PM EDT.

Alcoa (NYSE:AA) PT Boosted by Goldman (NYSE:GS)

Alcoa (NYSE:AA) had their price target raised by Goldman Sachs (NYSE:GS), while introducing their EPS estimate for 2013 of $1.40 a share.

Goldman also noted that per Alcoa's Saudi Arabia JV Ma'adan, they'll be coming online with their flat rolled mill and smelter sometime in 2013.

Alcoa has gotten a boost from expectations aluminum demand and prices will continue to move up in 2011, as the share price recovers from a long lull.

Alcoa closed Thursday at $16.47, down $0.13, or 0.78 percent. Goldman raised their price target on them from $16 to $17.

Alcoa (NYSE:AA), Ma'aden Advised by Baker and McKenzie on on Bauxite Mine, Refinery

Baker and McKenzie, which has operated in the Gulf region since the 1970s, has been advising Alcoa (NYSE:AA) and Ma'aden on their joint venture worth $7.5 billion in Saudi Arabia.

"This is an exciting and ground breaking project for Ma'aden, Alcoa and the Kingdom of Saudi Arabia," said Ian Siddell, Banking and Finance Partner who headed up the Baker & McKenzie finance team.

Siddell added, "Not only is this the first integrated aluminium project in Saudi Arabia, it includes the development of the first rolling mill in the Gulf and is a significant step towards the diversification of the Saudi Arabian economy."

Ultimately the project will have an investment of $10.8 billion in it.

AME said, "Ian Siddell was assisted by Bahrain based partner, Gordon Prestige, and associates Mohamed Hassan, Fatima Ghaith, Omar Al Ansari and Mai Abul in advising on the structure and documentation of the financing of the project including the documentation and negotiation of facility, intercreditor and security documents.

"London based Mike Webster and Riyadh based George Sayen were assisted by London based associates, Mathew Bonner, Peter Richardson and Rhiannon Williams in advising on the project documents including joint venture, construction, supply and off-take agreements."

Alcoa was trading at $14.39, up $0.14, or 0.98 percent, as of 12:42 PM EST.

Alcoa (NYSE:AA), Ma'aden Secure $1.9 Billion for JV

Loan deals worth $1.9 billion have been signed by Alcoa (NYSE:AA) and Ma'aden in order to further their work on the giant aluminum project in Saudi Arabia.

This is in addition to the already-secured $2.6 billion in financing from the Saudi Public Investment Fund and the Saudi Industrial Development Fund for the first phase of development.

The two companies have entered into a contract to develop a $10.8 billion industrial complex to sell to the region and international markets.

A key part of the project is a huge bauxite mine in Qassim, which has the capacity to produce up to 4 million metric tons.

Financing for the second phase of the project is expected to start up soon.