Saudi Arabia's state-owned Public Investment Fund will provide $2 billion financing for a phosphate project planned by Saudi Arabian Mining Co (Maaden), Saudi Basic Industries Corporation (Sabic) and Mosaic, said a report.

The loan will be for 17 years and will be repaid in twice yearly instalments after a five-year grace period, Maaden said in a bourse statement.

However, it did not specify which elements of the project, part of the kingdom's overall strategy of diversifying away from oil and gas and building job-creating downstream industries, would be paid for by the fund.

The Waad al-Shamal project, in the far north of Saudi Arabia, will involve total investment of around $9 billion for a phosphate mine, several major processing facilities, smaller downstream factories and a residential area.

In December Maaden said it had secured $4.2 billion financing commitments from banks. First production is expected in 2016. -Reuters