Investment Will Help Diversify Economy and Create Long-Term Environmental Benefits
Washington, DC; Riyadh, Saudi Arabia, May 13, 2016— The Multilateral Investment Guarantee Agency (MIGA), the political risk insurance and credit enhancement arm of the World Bank Group, today announced its support for a greenfield plant to recycle Electric Arc Furnace (EAF) dust—a hazardous industrial waste generated from the secondary process of steel production—and produce key metals in Saudi Arabia. In addition to providing environmental benefits, the plant will support the country's effort to encourage private sector development and diversify its economy in favor of non-oil industries.
MIGA has issued US$15.3 million in guarantees to Global Steel Dust SA of Switzerland for its investments in the construction and operation of Saudi Arabia's first EAF dust recycling plant. To date, Saudi Arabia produces about 190,000 metric tons of EAF dust per year, but no facility currently exists to safely and sustainably recycle this waste.
The steel dust facility will produce zinc oxide and iron product as main outputs of the recycling process. Zinc oxide will be exported to European markets while the iron product will be used in road construction, cement manufacturing, and steel production in Saudi Arabia. Additionally, the recycling plant will facilitate the transfer of energy-efficient technology in Saudi Arabia, create new private sector jobs, and enable partnerships with local engineering universities to train and prepare students for opportunities in this sector.
"MIGA is delighted to support Saudi Arabia in its efforts to diversify its economic base by attracting foreign investors with strong technological expertise," said MIGA's Executive Vice President and CEO Keiko Honda. She continued, "We hope that Global Steel Dust's construction of the first EAF dust recycling plant in the MENA region will offer Saudi Arabia's steel industry an environmentally sustainable way of disposing this waste, while also enabling the recovery of key metals."
"MIGA's support has been crucial in allowing us to enter a new market with confidence and to continue our steel dust recycling operations on a long-term basis," said Russ Robinson, CEO and chairman of Global Steel Dust.