Issue #5

Newsletter for Maaden employees

Latest News

strategIc topIc

sustaINabILIty

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Hr updates

socIaL LIfe

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Maadenbuilding an industrybuilding communities

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Latest News

Maaden completessuccessful rights IssueLast month, Maaden completed a rights issue offering which reached a coverage percentage of approximately 94% of the total shares offered to the public. our rights issue has achieved the highest percentage of subscribed shares that the saudi market has witnessed since the rights issue offering was introduced in the Kingdom. the remaining shares offered to Institutional Investors during the third and final phase had a coverage percentage of 345%. the newly issued shares were deposited into the shareholders portfolio on 14th december 2014. compensation amounts have been paid on 18th december 2014 to shareholders who have not exercised their subscription rights in whole or in part and to holders of fractional shares.

everyone at Maaden is proud of this success because

it reflects the shareholders trust in the company and its ability to lead the mining sector as the third pillar of the saudi industry. It also represents the markets belief in the success of our projects and initiatives to establish an integrated mining industry.

the massive rights issue coverage reflects investor confidence which should boost Maadens development and expansion plans to serve the national economy.

this milestone will also add strength to the professional credentials of the whole Maaden team because it was our employees who made this success possible with their tireless efforts and unwavering commitment and loyalty. at Maaden, our people are our most valuable investment.

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Maaden honored with sIdf forum award for best saudi company Investing in promising regionsMaaden was honored recently with the award for best saudi company Investing in promising regions during the opening of the Industrial development forum for promising regions held in riyadh. the two-day forum held under the patronage of He Minister of finance dr. Ibrahim bin abdul-aziz al-assaf and organized by the saudi Industrial development fund (sIdf) concluded on 14 January 2015. Maaden president and ceo engr. Khalid al Mudaifer received the award with engr. Majid Mugla, sVp engineering projects and procurement, Mr. thomas walpole, sVp aluminium sbu, Mr. yahya shanqiti, Vp gold sbu and eng. Ibrahim abu saai sustainability director at waad al-shamal.

the award was presented to Maaden in recognition of its commitment to the development of new and promising regions across the Kingdom. with approximately sar 100 billion investment spread across its gold, aluminium, phosphate, industrial minerals and copper businesses, the award recognizes the economic and social impacts of the companys diverse mining operations on the communities where it operates. these regional developments will create more than 50,000 direct and indirect job opportunities.

Maaden senior leaders receive the award

Minister of finance visits Maaden booth

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shared Maaden experience in developing promising regions

al Mudaifer: for Maaden, regional development is not about construction facilities but about peopleIn his keynote speech at the opening of the Industrial development forum for promising regions held in riyadh, ceo engr. Khalid al Mudaifer said: for Maaden, regional development is not about construction of buildings and facilities but about people and ensuring economic opportunities for local communities. our commitment to sustainability is central to Maadens vision. we have a clear responsibility to set the standard in mining sustainability for the Kingdom.

Here are excerpts from the ceos speech.

at Maaden In everything we do, we try to ensure that we are maximizing the value of the Kingdoms mineral wealth. this means maximizing value for the Kingdom, for our shareholders and for neighboring communities near our operations. In fact, at the moment, so, in many ways, Maadens activities have had and will continue to have a meaningful impact on the development of new and promising regions, which is the theme of this conference. we are proud to say that Maaden is the fastest growing mining companies in the world.

recently Maaden delivered a significant milestone in the development of ras al Khair, when we completed the Maaden

aluminium refinery, the last link in one of the worlds largest fully integrated aluminum facilities. that week, Meed published an article calling ras al Khair the most ambitious single phase industrial scheme ever conceived in the Middle east.

It was ambitious because of its scale and scope. to build ras al Khair, Maaden realized early on that the key would be collaboration. which involved tremendous coordination with a number of government bodies and agencies.

following on from the success of ras al Khair, Maaden was honored by the custodian of the two Holy Mosques and selected to play a lead role in an even more ambitious project the King abdullah project for the development of waad al shamal city. waad al shamal represents the Kings promise to the people of northern region of the Kingdom. to fulfill King abdullahs promise, Maaden wanted to maximize the social and economic benefits waad al shamal would bring to the local community. our first step towards this was to engage international expertise to assess the existing regional capacity, capability and needs.

the results of this assessment were used to shape our strategy for delivering

the project. the assessment identified the need to upgrade the educational and vocational skills of young saudis in the area. this is clearly required if waad al shamal is to deliver long term sustainable local employment and economic benefit. the assessment also identified a need to develop small and medium sized businesses. In this region, most (if not all) businesses are too small to handle large industrial transactions. they need stimulus to grow but they lack capabilities.

to meet this need, Maaden joined forces with technical and Vocational training corporation to launch the saudi Mining polytechnic, the first of its kind in the Kingdom. and in order to prepare young students for the polytechnic, Maaden is sponsoring learning programs within two local high schools. weve also joined forces with the royal commission to develop a 6 month Mubadarah program in which high school graduates from the north are given specialized training in math, english and industrial management to prepare them to succeed in higher education, vocational schools and the job market. it is my pleasure to report that the first group of students will graduate from this course in february 2015.

as part of our localization strategy,

Maaden has required all of our contractors meet minimum local content requirements of hiring and spending. we have also established an opportunities registration website and a community development center as resources for local companies who are looking to play a role in waad al shamal in addition to training and certification of those interested in working with our contractors.

furthermore, we have stipulated that our major contractors must hire at least 12% of their staff locally and must spend at least 10% of their contract value on local goods and services.

at its peak, waad al shamal will provide over 25,000 direct and indirect jobs. It will add over sar 15 billion to the saudi gdp and put in place a number of value added downstream investment opportunities.

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captionengr. al Mudaifer speaks during the sIdf forum

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Mpc successfully completes Iso surveillance auditMaaden phosphate company (Mpc) has successfully completed its Iso surveillance audit recently for Iso 9001:2008 (Quality Management system), Iso 14001:2004 (environment Management system), oHsas 18001:2007 (occupational Health and safety), and Iso 50001:2011 (energy Management system).

John ryan, director of services from certification europe, commended Mpc for its continuing commitment to the implementation of and compliance to these internationally recognized standards across its operations.

Ibrahim H. al shuraifi, director Quality Management, expressed his appreciation to certification europe and the auditors for their support as well as congratulated the total Quality Management (tQM) team for their hard work and dedication.

Mpc is one of the few companies in the Kingdom with all four certifications, which are widely recognized as the benchmark for organizations to meet their quality, environmental, safety and energy challenges.

salah M. al Mutlaq, Manager-total Quality Management, credits the tQM team and all the process owners for their hard work and dedication to complete all the requirements during the extensive audit process before the target date. He also thanked the Mpc executive Management for their support and commitment to achieve a complete management system for the company.

Maaden exploration conducts desert defensive driving trainingtaking the Maaden Values of care, to the next level, Maaden exploration recently conducted desert-based defensive driving training for its field-based teams and selected team members based in Jeddah. the training, presented by the Msa group, focused on pre-start inspections, on and off-road driving techniques, braking and driving distances and recovery techniques using both winches and recovery straps. the training was conducted in the actual environments in which the field exploration teams operate. this training is part of a comprehensive vehicle plan and policy put in place by Maaden focused on vehicle safety, increasing driver awareness and skill sets and decreasing accidents and the costs associated with them. the one-day course was preliminary to a more in-depth program scheduled for early 2015 which will build upon the lessons learned in this program.

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the audit team during the closing meeting

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training conducted in actual desert environment

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Kau president honors Maaden with plaque of appreciation

MIMc sponsors scientific symposiumMaaden Industrial Minerals company (MIMc) sponsored and participated in the scientific symposium Modern trends in chemistry, organized by the faculty of science at taibah university in Madinah, on 22 and 23 december 2014.

the dean of taibah university, He dr. adnan al Mazroua, presented Maaden with a plaque of appreciation, which was gratefully accepted by waddah a. al-Jabhan, Ir Manager at MIMc, on behalf of the company.

Maaden gold sponsors Kau scientific forumMaaden gold has recently participated as a silver sponsor of the 6th scientific forum organized by the King abdulaziz university (Kau) for its students.

the companys participation reflects its commitment towards the advancement of education and scientific research to improve the knowledge economy in the Kingdom in line with Maadens corporate social responsibility efforts.

Maaden was presented with a plaque of appreciation award by prof. osama tayyeb, Kau president and received by bandar abdulrahman basfar, csr Manager at Maaden gold.

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waddah al Jabhan accepts the plaque of appreciation

Latest News

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Maaden phosphate commercial team attends gathering of cooperatives and farmers in Indiathe Maaden phosphate sales & Marketing team recently attended a gathering of Indian farmers and cooperatives with KrIbHco, one of the companys largest customers in India, which imported around 220 Kt of dap from Maaden in 2014. around 500 guests, including representatives of various Indian state cooperative federations, attended the event.

speakers from various cooperatives outlined their fertilizer requirements, their challenges and the timely availability of products, as well as addressing the importance of high-quality dap to Indian farmers.

Mr c.p. yadav, Vice chairman of KrIbHco and Indian parliament member, and Mr rao, Managing director, talked about the importance of the Indian cooperative movement and how it is playing a crucial role in the lives of Indian farmers. there are almost 260 million members of Indian cooperatives scattered all over that country.

In his speech, Mr ayed al-Mutairi, director of phosphate sbu Marketing & Logistics, thanked KrIbHco for the successful gathering and for providing a platform for Maaden to meet the representatives of Indian farmers.

He added that Maaden considers KrIbHco to be a strategic partner and will continue to work on strengthening this relationship, as well as Maadens position in the Indian market.

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ayed al Mutairi with other delegates during the meeting

ayed al Mutairi presents an overview of the company

Latest News

Maaden representatives arrive with other delegates

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Ma customer focus goes globalMaaden aluminums (Ma) commercial team has been busy building customer relationships around the world with can sheet customers. Vp commercial elias sarkis and can sheet sales director Herve thenot have recently returned from the annual can Maker summit held in Hong Kong in mid-october which they attended for the purpose of building relationships with potential international customers.

the summit which was attended by leading can sheet makers, public holding companies, equipment manufacturers and consultants, is a key annual event for the can making industry. topics discussed included the state of the can making industry, global challenges, technical evolutions and new types of coating.

during the summit, sarkis presented Maaden aluminium to more than 120 delegates from around the world. our message is simple: were a new player on the global stage and we offer long-term, stable supply of quality product and customer service, sarkis said.

we have a world class team operating the can sheet mill and a world class team selling and distributing the product. this is only the beginning of an exciting journey for Ma following the milestone of our first production grade coil in June, he added.

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elias sarkis delivering his presentation during the can makers summit in Hong Kong

rolling Mill plant in ras al Khair

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| 13Latest News

ceo welcomes staff at Maaden barrick copper company (Mbcc)president and ceo engr. Khalid al Mudaifer met with the general manager, executives and employees of Maaden barrick copper company (Mbcc) at the Jabal sayid mine during his recent visit to the site. engr. al Mudaifer discussed the companys plans as well as current and future challenges associated with the start of copper production.

In his speech, the ceo expressed his support of the great work done to build Jabal sayid in the Kingdoms largest and most promising copper mine, underlining the great contributions that Maaden can bring to the partnership. He added that Maaden has been keen to start a copper business in addition to its current range of businesses in order to enhance its investment portfolio.

engr. al Mudaifer did a tour of the mines facility, which

included a visit to the production lines, quality laboratories and warehouses. we have completed the finishing touches to our partnership with barrick, and I consider this visit an opportunity to introduce you to Maaden and to welcome you to the Maaden family he added.

engr. al Mudaifers visit follows the completion of a transaction with the canadian-based barrick gold corporation to acquire a 50% share in the Jabal sayid copper project. Maaden is investing nearly sar 810 million ($ 216 million) through the Maaden-barrick copper company, in which Maaden and barrick have 50% share each.

speaking about the companys vision to become a world-class minerals enterprise, engr. al Mudaifer further highlighted Maadens efforts to contribute to the development of the

Kingdoms mining sector in order to make it the third pillar of the saudi industry, after the oil and petrochemical sectors.

when our second phosphate project at waad al shamal starts operation in 2017, Maaden will be amongst the worlds top phosphate producers. In the aluminium sector, we are completing one of the largest and most integrated facilities in the world with our partner alcoa. you may know us best for our gold mines where we currently produce over 150,000 ounces. with new projects currently under execution, we will grow to produce 500,000 ounces in 2018 engr. al Mudaifer shared.

during the meeting, engr. al Mudaifer also said that Maaden is focused on the development of the mining sector to offer its stakeholders added value. the companys sustainability efforts aim to provide economic opportunities in remote areas while protecting the environment. the ceo assured employees that the company will give

employment priority to residents of the communities where it operates, highlighting that 70% of the saudi staff working at Maadens mines come from the local communities.

employees were briefed about the four pillars of Maadens sustainability strategy, which include people; environment, Health and safety, community; and ethics. the ceo called on contractors and suppliers to support Maaden in the implementation of its sustainability strategy by providing jobs and business opportunities to local communities.

engr. al Mudaifer pointed out the importance of Maadens core values. at Maaden, everything we do is influenced by our values of care, teamwork, Integrity and accountability. we promise to share all these values with you because, from now on, we are one team he said.

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engr. al Mudaifer with staff at Jabal sayid Mine

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| 15Latest News

Maaden participates in 18th arabal conferenceMaaden recently joined prominent industry leaders and experts from the regional and international aluminium industry as a gold sponsor at the 18th International arab aluminium (arabal) conference held in bahrain from 25 until 27 November 2014.

Held under the patronage of HrH prince Khalifa bin salman al Khalifa, the prime Minister of bahrain, the conference that was hosted by aluminium bahrain b.s.c. (alba) was inaugurated by He sheikh Khalid bin abdullah al Khalifa, the deputy prime Minister of bahrain, on behalf of the Minister.

Maaden chairman engr. abdullah saif al saif and president and ceo engr. Khalid al Mudaifer attended the conference together with Mr. tom walpole, sVp aluminium sbu and engr. abdulaziz al Harbi, president of Maaden aluminium along with other representatives from Maaden aluminium and aluminium sbu. Maadens representatives met with customers and delegates at the companys booth during the three-day event.

Maaden aluminium was awarded the gulf aluminium councils (gac) prestigious annual environmental award, which was received by engr. al Harbi.

engr. al Harbi also delivered the closing remark for arabal 2014, concluding: by the beginning of next year, Maaden aluminiums goal of commencing a fully integrated supply chain from mine to metal will have become a reality.

engr. al Harbi added that Maaden looks forward to celebrating this achievement with its friends and business partners as the host of arabal in 2015.

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He sheikh Khalid al Khalifa visits Maaden booth at the conference

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engr. al Harbi delivering his closing remark for arabal 2014

He sheikh Khalid al Khalifa with Maaden team at the companys booth

He sheikh Khalid al Khalifa with Maaden team led by chairman engr. abdullah saif

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Maaden ceo speaks at asharqiya third Quality forumspeaking at the recent asharqiya third Quality forum, Maaden president and ceo engr. Khalid al Mudaifer shared the companys efforts to implement a total Quality Management (tQM) approach across its operations.

the forum was held in al Khobar under the patronage of HrH prince saud bin Naif bin abdulaziz, governor of eastern province. It gathered speakers from several government bodies and major national companies who presented their experiences in the implementation of quality systems and programs at their various organizations.

In his speech, engr. al Mudaifer said that quality is a key concern for a company like Maaden, which is young and leading a new industry: while weve achieved meaningful certifications from Iso and oHsas, we continue to go beyond the minimum requirements of these standards to try and establish a new benchmark for quality in the mining sector in Ksa.

He also noted that Maaden embeds quality through partnerships with industry leaders like sabic, the largest petrochemical company in the Middle east; Mosaic, the biggest phosphate company in the world; alcoa, the largest aluminium company in the world and; barrick, the largest gold company in the world, which facilitate knowledge and technology transfers that enables Maaden to achieve international levels of excellence in performance.

Maaden is implementing tQM across the company because we believe that in order to achieve and maintain a world class level of operational performance, we must adopt a total quality approach in all of our operations. we must move beyond regulatory compliance and work to establish a culture at Maaden where quality is rooted in the way our employees think and behave, the ceo said.

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engr. al Mudaifer receiving the plaque of appreciation

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the ceo presents an overview of the company

engr. Khalid al Mudaifer

| 17Latest News

sMap batch 5 conducts Mpc site visitthe fifth batch of the saudi Manpower adequacy program (sMap) consisting of 43 trainees were officially welcomed at Maaden phosphate company (Mpc) on 2nd december 2014 by yazeed riyadh al rasheed, supervisor- tdd and Mohammed balobeid, training specialist-tdd on behalf of salem al shammari, Manager, tdd.

prior to the site visit, the trainees attended a safety orientation provided by saud Naqaa al Harbi of Hse&s, to get acquainted with the importance of safety practices and precautions while inside the plant premises. amjad yassin, process & training coordinator-sap, accompanied the trainees during the tour while providing an overview of the processes and key functions of each facility visited.

the tour generated positive feedback from the trainees who have expressed enthusiasm to become part of Mpc family where they could develop and maximize their potentials.

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Mpc welcomes the 5th batch of sMap trainees

trainees attend a lecture about the company

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engr. al Mudaifer receives the award from gen. saeed al Qahtani

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Maaden showcases its latest safety technology at 17th IsecMaaden recently participated in the 17th International conference & exhibition for Industrial security (Isec) held from 3 to 4 November 2014 in riyadh. the event showcased the latest emergency response equipment and a refuge chamber used at the companys mine sites.

the Higher commission for Industrial security honored Maaden for its participation in the event as a platinum sponsor. president and ceo engr. Khalid al Mudaifer received the award from gen. saeed bin abdullah al-Qahtani, assistant Minister for operations, who presented it on behalf of Interior Minister prince Muhammad bin Naif.

during the event, ahmed ajabnoor director of corporate sustainability assurance, talal a. alanazi director of corporate Industrial security, Magdal al-Khaldi director of Industrial security and safety from Ma, and John Lease eHs director from alcoa delivered presentations about the latest security and safety technology and practices implemented by the company at its facilities across the Kingdom.

Maaden representatives Khalid Hajar and turki Hazazi assisted visitors and answered their equipment-related queries together with the emergency response team from Maaden golds al-amar Mine to ensure that they had a great experience. Maadens booth attracted hundreds of visitors who were interested in Maadens capabilities in the field of industrial security and safety, and in how these capabilities are applied and implemented within its facilities and projects.

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Maaden booth at the conference

engr. Nabil al fraih welcomes VIps inside the refuge chamber

safety equipment featured at Maadens booth

refuge chamber

| 19Latest News

Jubail ras al Khair highway opens with 6 lanesthe royal commission for Jubail and yanbu (rcJy) opened the Jubail ras al Khair highway on 30 december 2014. the new highway has a total distance of 86km, which is 20km shorter than the current road.

the rcJy reported that the project was completed in three phases and features three lanes in each direction, plus 11 bridges, drainage systems and safety facilities.

the new highway will serve Maaden employees and other units located in ras al Khair. the royal commission is making a major effort to develop the Kingdoms industrial cities, including ras al Khair.

employees of Maaden aluminium and Maaden phosphate have expressed their pleasure at the opening of the new road, which will save time and improve safety on their journey to work.

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aerial view of the Jubail - ras al Khair highway

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Map of new Jubail ras al Khair highway

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King saud university students at ras al Khairthe company has recently hosted King saud university students from the economics department at ras al Khair Industrial city. the students stayed at the village accommodation and they later toured the phosphate and aluminum projects.

Media delegation visits phosphate and aluminium projectsthe company has lately hosted a media delegation at ras al Khair Industrial city where the delegation was received by Mr. Ibrahim al-jassim, Vice president, Maaden aluminum company. the delegation visited the phosphate main headquarters located in ras al Khair where they attended a detailed presentation demonstrating the aspect of safety together with all procedures taken by Maaaden phosphate company in this regard. Later on, the delegation attended a visual presentation that casted light on the phosphate project, its development and production phases. the visit concluded with a field tour that included the phosphoric acid, sulfuric acid, ammonia and the di-ammonium phosphate factories. Later, the delegation visited Maaden aluminium company where they attended an in-depth presentation of the project followed by a field tour in which they explored the aluminum project and got a closer idea about the refinery, smelter and rolling mill.

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the students during their visit at Mpc

students from King saud university during their visit at Maaden aluminium

Media representatives visit Maaden aluminium facilities

the media delegates at Mpc

Media representatives visit Maaden aluminium facilities

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Maaden joins KfupM career dayMaaden welcomed new graduates and bachelor degree students to its booth during the King fahad university of petroleum and Minerals (KfupM) career day, held recently where the company participated as a platinum sponsor. the opening ceremony was attended by His excellency dr. Khalid s. al sultan, university rector. through its participation, Maaden hopes to attract the best talent and potential employees from KfupM and other universities and colleges.

the slogan, our Next project is you, enabled the company to showcase available career opportunities at Maaden and its affiliates, as well as the benefits provided to employees. In addition, Maaden presented its ongoing training and development initiatives for new bachelor degree graduates. these include the professional development program, which consists of practical and theoretical training for a period of 9 to 18 months. trainees will have the opportunity to join various departments at one of Maadens affiliate companies, such as Maaden phosphate, Maaden aluminium or Maaden gold.

Maaden was presented with a plaque of appreciation by dr. Khalid al sultan, which was received by Mr. Miteb H. al-driwish, director, Hr & admin (Mpc & Mpwsc) on behalf of the company. Mr. al-driwish expressed his appreciation to KfupM and thanked them for their continued efforts to enhance the relationship between the university and the career day sponsors, for the benefit of the Kingdoms youth.

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dr. Khalid al sultan with Maaden representatives at the companys booth

Miteb al driwish receiving the plaque of appreciation from dr. Khalid al sultan

students visit Maaden booth

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Latest News

Maaden Investor day a successMaaden recently organized an Investor day with a site visit to Maaden facilities in ras al Khair. the visit was aimed at providing investors and analysts of Maaden with a deeper understanding of the company by showcasing its world class facilities, to introduce the affiliates senior management to the investment community, and to showcase the strong and dedicated workforce of Maaden.

the event was attended by representatives from major fund and investment companies from across the gcc region such as Morgan stanley, Hsbc, ajeej capital, riyadh capital, Hassana Investment company, Jarir Investment, Ncb capital, al-Jazeera capital, MefIc capital, albilad capital, and samba capital, among others.

Mr. Khalid al rowais, senior Vice president and cfo welcomed the delegates and thanked them for attending. to give participants more insight into the companys various businesses, Mr. yaser a barri, treasurer and Head of Investor relations delivered the corporate presentation while engr. riyadh al Nassar, president, Mpc presented an overview about the companys phosphate operations. Mr. abdulaziz al Harbi, president, Maaden aluminium presented a section on aluminium and Mr. yahia M alshangiti, president, MgbM concluded with the gold and base Metals sections.

following the presentations, the delegates visited Maadens aluminium and phosphate complexes where they were briefed about the technology and processes at each plant.

the gathering generated positive response from the delegates. a representative from samba capital said: I would like to extend my gratitude to Maaden management for arranging a successful event, I hope this will be the start of many investor day events in the near future.

Maaden team with investors and analysts

the delegates during their visit at Mpc

the visitors receive a briefing about the processes at one of the Ma plants

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Khalid al rowais welcomes guests during the gathering

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strategIc topIc corporate strategy & business plan

for the past two years, Maaden has successfully completed two business planning cycles under the umbrella and direction of Maadens board of directors. this was achieved by practicing the core principles of integrated multi staged planning, structured accountability, lean processes and sponsorship by the executive Management.

within the first week of Jun 2014, Maadens board of director launched the 3rd rolling revision of the Maaden business plan for the period 2015 - 2019, in-line with strategic priorities approved earlier in May 2014 by the board of directors. In the revised strategy, Maaden adjusted its focus to achieve the optimum balance between growth and performance.

this strategic focus revolves around extracting the maximum value from our assets through distinctive operations while continuing placing the right investments to build the 3rd pillar of the saudi Industry. to achieve Maadens 2015-2019 business plan targets, the executive Management created a specific set of initiatives that are structured around the following four strategic pillars:

Operational Excellence - Maximize throughput andoptimize costs, deliver capital projects on plan and achieve best in class eHs and social impact.

Marketing & Sales - Refine and implement a marketingstrategy to manage expected market volatility, sustain profitability and prepare for new growth.

Exploration & Growth - Maintain exploration budget andactivities to sustain and provide growth options for all businesses and develop robust and high quality projects pipeline.

Capability & Capacity Building - Develop, nurture andinstitutionalize our talent and establish a lean and effective organization and system.

the corporate strategy & planning department conducted a series of workshops with the strategic business units (sbus) and with functional departments (fds) to review with them the managements five-year vision to be a world class Minerals enterprise, the strategic direction, long term market fundamentals, financial assumptions and other guidelines.

on september 07, 2014 Maadens five-year business plan was presented and approved by the executive committee of the board of directors, and on september 25, 2014 Maadens board of directors approved the 2015-2019 business plan.

every member of Maaden family is expected to participate in the implementation of our strategy and business plan. the more this participation is effective, the more benefits to our country, our company and to us as individuals can be realized.

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did you know.gifts:Maaden employees must be careful when accepting gifts from a customer, client or partner. any gift given to an employee, or the employees family or associates could raise a potential conflict of interest. please remember that it is a breach of our rules if such a gift is given in exchange for the employee performing or failing to perform a designated action. In all cases, an employee cannot accept a gift valued over 1,000 riyals, or if it is given frequently or regularly.

privileges:Maaden staff must also be careful when accepting privileges like free hotel accommodation or a discount in products or services. If given to an employee, or his family or associates, such privileges may be a breach of Maaden rules if they are given in an ad hoc manner, or if they are not made available to other Maaden staff, or if they are given for the purpose of establishing a relationship with the Maaden employee receiving them. Maaden staff may accept privileges arranged by Maaden or offered to the general public.

Hospitality and entertainment:Maaden staff must also be careful when accepting hospitality or entertainment. If given to an employee, or his family or associates, such hospitality may be a breach of Maaden rules if it is extravagant or occurs frequently. any entertainment offered to an employee or his family or associates may break Maaden rules if it is unusual or presented outside of a formal business relationship with Maaden; or if the inviting person is not attending.

strategic topic

gIftINg

| 27strategic topic

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We would like to hear from you. Please send your feedback to the IT Help Desk

Information Security Article

Information SecurityInformation security is the practice of defending information from unauthorized access, use, disclosure, disruption, modification, perusal, inspection, recording or destruction. The prime goal of information security is to protect the confidentiality, integrity and availability of information.

Imagine that you are creating information that is unique and valuable to MAADEN and you come across a very good freeware which helps you in this work. You download it without considering the consequences, hoping it would improve your work. Upon installing, to your horror the computer just freezes and becomes highly unstable, and you end up formatting the entire machine.

Like anybody you would get really upset that you lost the information that you worked so hard on, and that it will take now hours of your valuable time to recreate.

What if the information that you lost cannot be recreated ever?

These are the some types of information security problems MAADEN has to address every day. MAADEN has many information security responsibilities:

It wants to make sure that your information is always safe from corruption and maintains its purity and integrity.

It wants to make sure the information you work on is not lost and is always available to intended users.

It wants to make sure that the information does not fall into wrong hands and remains pure and confidential.

It wants to make sure that only authorized people have access to the appropriate information.

It wants to make sure data is not only well protected from external intruders or competitors, but also protected against theft and accidental disclosure of sensitive information by employees and partners.

It wants to make sure that its information security is at par with the international benchmarks and security standards.

It is MAADENs responsibility to take care of all of its employees and its business. You are a very important part of this process. The small things that you do, can make a big dierence in keeping MAADEN information secure.

What Can I Do?

Always follow the MAADEN policies and procedures. They help to keep you and the company information safe.

Keep MAADENs information safe. Leave information in the oce where it is protected. If you need to take it with you on a trip or home for work, make sure you protect it by keeping it with you or locked up at all times.

Always be aware of your surroundings. Be prepared when you are travelling so that you can respond to almost any problem. Simple tasks such as letting someone know where you are going, or making sure your mobile is fully charged can help to avoid problems.

Practice Need to know. Do not share information with people unless they are supposed to know it. Your companys information and ways of doing business are confidential. So are their list of customers, prices, and finances. Y

Not sure about something, always ask IT Help Desk. You can call help desk anytime if you see anything suspicious, or if you do not know how to handle a situation. They can only help you if you help them.

Information Security is Everybodys Responsibility

MAADENs Information Security Teams goal is to protect information, systems and equipment that make the company work. They cannot succeed alone in achieving their goal. They need your help.

You are the most important part of their team. You can help them by following MAADEN Information Security Policies and Procedures. With your help, MAADEN can be a safe and secure place to work.

DO YOU KNOW

Most security incidents are actually the result of a simple mistake that could have been prevented if someone was well aware of how to be secure. Have an Information Security mindset!

Information Security is Everyones Responsibility

Have you ever wondered what information security

attacks such as cyber-attack, virus or phishing really are?

Why does MAADEN keep emphasizing about

information Security and why it is so important for

MAADEN?Information security

MIsa@Maaden.com.sa : .. we would like to hear from you. please send your feedback to: MIsa@Maaden.com.sa

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Localization efforts at King abdullah project for waad al shamal city developmentthe King abdullah project for waad al shamal city development (was) represents the companys commitment to drive sustainable national and community development that will bring about job creation and facilitate a better life for people in the northern region.

the contract signing event of the waad al shamal project in february 2014 marks a historic milestone in the Kingdoms diversification strategy, where Maaden plays a leading role in the citys development. this includes the establishment of a world class phosphate processing plants, the creation of new upstream and downstream businesses and a fully developed residential community.

Localization is a top priority at waad al shamal project where local procurement and saudization are deeply embedded in the way business is conducted. to support this, supplier contracts for waad al shamal project specify that 12% of the suppliers employees should be from the region and that 10% of the contract price should be spent on goods and services from the region. this ensures that local suppliers are prioritized over other competitors and job opportunities are provided to local residents.

a Local development center at waad al shamal project was opened to serve as a focal point for engagement in the area. More than providing general information about the project, the center facilitates the registration of applicants seeking recruitment, registration of local contractors/suppliers and registration or review of investment opportunities. a database has been developed to capture information on local talent, contractors and suppliers. to date, there are a total of 155 registered contractors covering 18 different services in the database.

the local development center was made accessible to all waad al shamal project partners (saudi aramco, saudi rail, saudi electricity company) who may use its available database for their recruitment and contractors, which will reflect positively on the regional development. on the investment side, there are currently four investment requests received involving a steel production plant, concrete batching plant, heavy vehicle maintenance shop and water treatment. also, some global companies showed interest to open a branch in the area to support their future business in the region.

other engagement activities include several meetings with local businesses and arar chamber of commerce in collaboration with Maaden procurement department; a meeting with the social development center of Ministry of social affairs to review the needs in region; meeting with al-rajhi foundation to discuss their activities and potential areas of interest; several meetings with bab rizq Jameel to explore areas of common interest in serving the local region. Moreover, in order to get the commitment to localization from epcs,

sustaINabILIty

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a staff receives visitors at the Local development center

| 29sustainability

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the localization status was shared with all epcs companies during umm wual main epcs meeting done by was project team to reflect the importance of localization and obtain commitment from highest level of epc organizations to discuss localization targets and address related concerns with actions. In addition, the localization status was shared with Maaden president and ceo engr. Khalid al Mudaifer.

the scale and scope of the waad al shamal project will go a long way to ensure a sustainable and bright future for the people in the northern region. to fully realize this vision, the challenge is to keep the full collaboration amongst all stakeholders intact, as the company continues its efforts to drive the citys development forward.

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Mockup of waad al shamal

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al baitha mine supports local community suppliersIn line with its efforts to support the saudi governments strategy to build capacity and create economic opportunity for saudis especially in the regions where it operates, Maaden aluminiums (Ma) al baitha mine has been increasing its efforts to buy locally.

In the years 2013 and 2014, the mines procurement department has organized two pre-qualification town hall meetings to identify a number of local suppliers, said Mine operations director ameen al ghamdi. the mine procurement team has streamlined its sourcing process and provided the al baitha mine with an easy access point to local service providers. one third of the contracting volume of the mine has been sourced from within the Qassim region, he added. .

during the first quarter of 2014, over 100 purchasing orders were issued to local contractors which included 20 local businesses registered in Qiba.

a gas station in Qiba was the first to receive a local contract. It has expanded the activities beyond being a diesel supplier to providing small contracting work. turki, a local supplier talks about his experience: dealing with Ma is different compared with other companies. Ma respects payment timelines and uses one standard policy which makes the process transparent. due to the work at al baitha mine, I have been able to invest in my company and have now taken jobs that I could not have done otherwise, turki said.

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Khalid al shammari from mine procurement team welcomes one of the local suppliers

sustainability

ytilibaniatsus13 |

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| 32sustainability

Maaden gold sponsors the education of children with special needsIn line with the communitys development initiatives and corporate social responsibility (csr) programs, Maaden gold has sponsored the education of three children with special needs for the second year in a row.

reflecting the companys core value of care, this sponsorship includes financial assistance for the childrens education from the year 2014 until 2015 through the Hope center, a non-profit organization dedicated to the care and education of children who are mentally and physically challenged. the center is managed by specialized personnel who take care of the childrens education, training and nutrition.

during a recent visit to the center, csr Manager bandar basfar ensured the companys continued support towards the education of the children. He was also briefed about the childrens progress as well as the centers curriculum, which covers subjects such as arts, english, Math and science, and provides functional development skills such as self-help and socialization, among others. the goal is to enable the children to learn acceptable social skills, work independently, follow directions and rules, learn to express their thoughts, develop muscle coordination and foster friendship, basfar said.

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specialized games keep students busy

a teacher supervises one of the students

bandar basfar poses with students during his visit

students at play

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Maaden gold sponsors sports festival for Mahd youththe inauguration of the first Mahd ad dahab sports festival for the youth organized under the patronage of Mahd ad dahab governor rashed abdullah al Qahtani, was held on 24th November 2014.

the governor was joined by Maaden representatives abdulrah-man omar badaoud, Maaden gold financial advisor, Mahd Mine Manager obaidullah al Harby and csr Manager bandar basfar during the festivals opening ceremony. a number of local govern-ment representatives including some members of the Mahd local council also attended the inauguration.

the two-week festival is being sponsored by Maaden gold through the Mahd ad dahab mine in line with its sustainability efforts and community development initiatives.

the sports tournaments, which aim to promote a healthy and active lifestyle among the youth in the area, is being held at the Mahd ad dahab stadium.

abdulrahman omar badaoud speaks during the opening of the sports festival

sustainability

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the Maaden academy INsead Leadership development programthe second cohort of the senior Leaders development program (sLdp) started their journey with the Maaden academy on october 22, 2014. Mr. riyadh al-Nassar, president, Maaden phosphate company, kicked off the program and welcomed the 31 participants. to date, this group has completed two modules: strategic Visioning and critical thinking. they are scheduled to take their third module, entitled developing word-class people, on february 25 & 26, 2015. this cohort will graduate after the completion of all six modules by august 13, 2015.

Nahil al-deri, briefed colleagues on his group input as part of a group discussion during the critical thinking Module, which was conducted at the new academy location at MIc/raK on december 3 & 4, 2014. He is highlighting some common traps into which Maaden falls when making decisions, and sharing a few reminders designed to minimize the negative effects of decision biases help us make sound decisions.

a new location for the Maaden academy

the Maaden academy relocated to raK residential Village effective september 17, 2014. etgaN and MIc worked jointly to complete the partial redesign of the groundfloor facility and prepared it for hosting the Maaden academy Leadership development program. since then, the facilty has been used mainly for INsead Leadership development programs, functional/technical training in support of etgaN initiatives and the professional development program pdp, in addition to a wide range of job-related events and activities.

MIc has extended their full support to ensure world-class standards in terms of the facility, It support, catering, access, safety standards, janitorial and other logistical services. they also allocated well-furnished apartments as on-site accommodation for academy participants during the program modules.

the second phase of the redesign, planned for 2015, will involve an upgrade of the full facility and technology infrastructure to support Maadens current and future learning and training needs across the organisation. the facility will be redesigned so that it has additional learning facilities such as classrooms, a library, a learning resource center, a computer lab, a conference room, break-out rooms, offices, a multi-purpose room, and a prayer space.

the Maaden academy at raK residential Village

INsead professor Miguel Lobo with the cohort 2 participants during one of the lectures

| 35etgaN

Maaden academy conducts phosphate 101 session at al Jalamid site on december 4th, 2014 Maaden phosphate sbu Marketing and strategy Implementation team in collaboration with Maaden academy conducted a new session of phosphate 101 in al-Jalamid. about 50 employees attended the session. this session is following 2 previous sessions conducted in Maaden HQ in riyadh and at Mpc in raK.

the phosphate 101 awareness session provides an overview of phosphate markets and Maaden positioning in these markets. this awareness session is part of our aspiration to be a world class Minerals enterprise and in particular to be among the top players in the global phosphate industry with phosphate being one of the three primary commodities which generate revenue for our company.

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participants of the phosphate 101 awareness session

Mishal al Mutairi delivers a presentation during the session

| 36etgaN

phosphate sbu supply chain strategy will empower Maaden logistics to handle the massive growth in phosphate business

our supply chain strategy has been enhanced over the last months to address future challenges and deliver massive growth in Maaden phosphate business. by 2018, the sbu will indeed handle ~200 shipments to five dif-ferent regions (totaling freight costs of ~usd 90m). we see freight as a strategic lever to address new markets, enhance margins and improve customer satisfaction. this new approach will bring meaningful benefits and has already demonstrated its value.

ayed al-Mutairi, director sales, Marketing and Logistics, Maaden phosphate sbu

examples of actions realized on the supply chain strategy:

Increased standard loading rate at raK

Standard loading rate is one of the drivers of freightrate as it defines time spent at port. based on phosphate sbus analysis & recommendation, the decision was made with Mpc to increase the standard loading rate to 15 kt/ day for cargos above 30 kt.

as a result, usd 2m of additional margin for Maaden is expected by 2018.

as stated by shipping company clarksons, Vessel owners would be impressed by a charterer with a high standard loading rate

New record low on freight costs

A record low of USD 6.8/ MT of freight costs to Indiahas been achieved in 2014. such achievement was made possible thanks to several actions at Maaden level: increase in average cargo size (40kt), 3-week notice given by sales and higher standard loading rate at raK. savings are estimated at approximately usd 2.0/ Mt or approximately usd 80,000 per cargo.

capability building

DedicatedcoursesonPhosphatefertilizersupplychainareavailable at Maaden academy to share best practices within Maaden organisation. as waleed ali al-Harbi, section Head, fertilizer shipping, puts it, Logistics is now well equipped to optimise freight costs and support Marketing and sales efforts.

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Loading facilities in ras al Khair

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Hr updates

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Introducing the new Maaden total reward program a key element in Maadens ambitious growth plans over the next five years is to ensure that employees have the opportunity to grow with the company. the results of the 2013 employee engagement survey identified a number of opportunities for improvement in Maadens Human resources practices such as career development and growth, as well as reward and recognition that would make Maaden a better place for all employees.

In response to the feedback received in the survey concerning the companys current rewards and recognition program, Maaden Hr have worked on a new rewards initiative that will help improve the level of employee engagement. the total reward program will ensure that Maaden have the right people in the right roles, and that they are rewarded in the right way. In addition, the total reward program seeks to create a stronger performance culture, where results are rewarded and employees are provided not only with competitive pay, but also enhanced opportunities for career development and growth.

total reward covers both monetary and non-monetary elements of reward. It includes the complete offering provided to all Maaden employees, from compensation to benefits and allowances, career development, work-life balance and recognition programs. the new features of the Maaden total reward program will be introduced across the company in the coming days and weeks, through a series of communication messages and various communication channels.

In a note to Maaden executives introducing the new total reward program, Maaden president and ceo engr. Khalid al Mudaifer said, together we are building a world-class company in which our employees can enjoy rewarding and fulfilling careers. I believe our new total reward program is another step in the right direction. I would like all executives and managers to communicate this fully to their teams.

New total reward program presentation at Mpc

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| 41Hr updates

employees were honored for their outstanding commitment during a recent employee gathering in riyadh (our day)on 17 december 2014, riyadhs Maaden staff gathered for the companys 5th employee event called our day. Held at the rashoosh events facility, the gathering was organised in conjunction with the service award ceremony that was attended by Maaden president and ceo engr. Khalid al Mudaifer and various other senior executives.

during the service award ceremony, engr. al Mudaifer honored Maadens employees who have been with the company for at least five years to celebrate their dedication, loyalty and contributions to the growth of the company and to becoming a world-class minerals enterprise.

In his message to the staff, the ceo said: although Maaden is only 17 years old, you may be surprised to hear that we are honoring the dedication of colleagues who have been with us between 20 and 25 years. I would like to

personally thank the honored for being such an important part of Maadens journey towards becoming a world-class enterprise.

engr. al Mudaifer spoke about the companys new total rewards program. we are improving our total rewards offering because we want our employees to have rewarding and fulfilling careers at Maaden. were also doing so because our values tell us that this is the right thing to do, he said.

the ceo also encouraged everyone to live Maadens values of integrity, care, teamwork and ownership, citing various ways in which leaders and their teams can apply these values in their daily work. He emphasized the value of working as a team with colleagues across the organization to achieve shared goals, and encouraged leaders to exercise fairness and transparency in decisions that affect their staff. He also highlighted the importance

of communicating clear business objectives and expectations to staff.

our days goal was to help strengthen relationships between staff members and the management, and promote the companys core value of care.

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ceo with the long service awardees at the our day gathering in riyadh

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1

sanjay Kumar bhuyansr. busi. devt. specialist

phosphate & IM business devt.

New joiners - Mpc Mpc -

Muhammad basir fazal subhansupervisor shift, day

raK - operation gas, sap

Hr updates

sameer Nafi s. al-shammaricustoms representative I

raK - procurement & supply Management

essam Izzat Mustafa QrunfulehLead operator

raK - operation gas, sap

Mohammed walid Husein al-rifaistaff rbI engineer raK - reliability, reliability

performance

riaz Hussain dhani buxelectrical engineer l

raK - operation phosphate

New joiners - riyadh HQ riyadh HQ -

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abdullah abdulkarim al Humaidsr. specialist-crisis Mgt. & emergency response

Industrial security

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balal aquilsr. Legal advisor

Legal

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gaurav rajender sharmasr. specialist

org. devt. & compensation

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Najim al Hassansr. specialist

envi. Monitoring & tech. support

James william Marczakchief information officer

Vp office, finance & It

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Mohammed faleh al-Qahtanisecurity guard trainee

ad duwayhi project

salem al-Khaldisecurity guard trainee

al amar Mine

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travis andrew craigchief geologist

New Mining development

Zhu Zhen Huachief geologistal amar Mine

turki saeed al-rogesecurity guard trainee

ad duwayhi project

abdulrahman alMutairisecurity guard trainee

Mahd Mine

Megarry shojaa alqahtanisecurity guard III

ad duwayhi project

yunus ertugrul gokceMaintenance general foreman

as suq Mine

Majid al-sayedsecurity guard trainee

Mahd Mine

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Moeed Iqbal Moinuddinprocess Improvement specialist

process planning & performance control

abdullah ali al-otaibisampler II

ad duwayhi project

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Michell Jean damandgeneral foreman, Mill Maint. - amar Mill

al amar Mine

anas assadspecialist III, payroll

Jeddah - Hr

Mishary aabid Mohammed al-Harbi

security guard IIIsukhaybarat Mine

Mohammed abdullah al-saifsecurity guard trainee

al amar Mine

New joiners - MgbM MgbM -

Hr updates

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socIaL LIfe

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5th employee gathering (our day) in riyadhMaaden staff in riyadh gathered recently for the companys 5th employee gathering (our day) held at the rashoosh events facility. the gathering, which was held in conjunction with the service award ceremony, was attended by Maaden president and ceo engr. Khalid al Mudaifer along with several senior executives.

employees and their children joined the event (our day) by participating in the various games arranged for them with each receiving a special gift from Maaden. employees had the chance to bond with their colleagues by joining in the various table games and sports activities while others took the opportunity to just catch up with friends during the evening. four lucky staff each won a gold bar during the raffle draw.

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| 47social life

2nd sukhaybarat & bulghah sports festivalfollowing last years success, the 2nd sukhaybarat and bulghah sports festival held from 25th November-16th december 2014, received bigger participation with more employees joining in the various sports activities.

the opening ceremony was attended by Maaden gold executives and officials from auqlat al suquor. during the event, engr. abdulrahman abdulshakour, Ir director, said that the festivals theme, Keeping fit for productivity, promotes an active and healthy lifestyle among staff.

salim al wahabi from the charity welfare, auqlat al suquor, expressed his appreciation to Maaden for the support to neighboring villages by providing jobs and services.

special prizes were awarded to omer Khalil Mohammed fadl and bishawarkarma Hariy for winning the logo contest and marathon, respectively.

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abdulrahman abdulshakour engages in a traditional saudi dance with guests

Maaden gold executives and officials from auqlat al suqour

winners of the logo and marathon contests receive their prizes

| 48social life

Mahd ad dahab holds 19th sports festivalbringing together employees in the spirit of teamwork and sportsmanship, Mahd ad dahab mine has recently concluded its 19th sports festival held on 03-17 November 2014. this years theme, teamwork for excellence, highlights the companys core value of teamwork and reflects its commitment to enhance camaraderie among staff. as part of this years activities, a logo contest won by butch bryan oquindo was earlier launched by the sports festivals Higher committee headed by engr. alaa Qugandi.

the annual sports festival, which aims to encourage employees to adapt a healthier lifestyle through sports, includes various team and individual sports activities such as basketball, football, volleyball, table tennis, lawn tennis and darts, as well as a marathon where children of employees were also invited to join.

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a child receives a gift from Maaden

Maaden executives at Mahd ad dahab distribute gifts and prizes during the festivals opening