Arabian Cement decides on court action over limestone dispute

Arabian Cement Co of Saudi Arabia has filed a lawsuit against Emaar the Economic City to claim the remaining quantities of limestone it should have received in accordance with an agreement signed between the parties on 28 April 2012.

Under the settlement, Emaar EC was committed to provide, free of charge, 50Mt of limestone needed for the cement company's manufacture from the dredging output extracted from the construction of the King Abdullah Economic City port, after obtaining the necessary mining licence from the Ministry of Petroleum and Mineral Resources. In return, Arabian Cement was committed to deliver Emaar EC areas of plots it owned.

During the six-year agreement, which ended on 28 April 2018, Emaar EC only supplied Arabian Cement with 44.7Mt of limestone. The remaining 5.3Mt of the 50Mt agreement were not received, as Emaar EC refused to provide the quantity due to the expiry of the agreement period.

Arabian Cement is now proceeding with the legal action to claim the remaining quantities estimated at 5.3Mt of limestone, or asking for the return of part of the lands that it had previously ceded to Emaar EC.