RIYADH, 27 April 2006 — The Saudi Arabian Mining Company (Maaden) plans to increase the production of gold from 240,000 oz to 300,000 oz by developing new mines which will start operations by the end of this year or the beginning of next year.
This plan will add value to the mining industry in the Kingdom. Maaden President & CEO Dr. Abdallah E. Dabbagh clarified that Maaden has six mines, four of them are in operating stage (Mahd, Sukhaybarat, Bulghah and Al-Hajar Mines) currently producing 240,00 oz of gold; 500,000 oz of silver; 1,000 tons per year of copper; and 2,000 tons per year of zinc.
Dr. Dabbagh said that Maaden is preparing to put Al-Amar Mine in operation at the end of this year.
Al-Amar Mine is the first gold mine in the Central Province which will operate through underground mining with expected production of about 200,000 oz per year of gold. Average production will be 1,100 tons per year of copper; 54,000 oz of gold; 840 oz of silver; and 6,500 tons of zinc. The company is also working a plan to put Ad Duwayhi Mine into operation in 2008.
The exploration program covering 60,000 sq. km. in the Arabian Shield will enable the company to define 6 million oz as a resource and 2 million oz as a reserve. The company is planning to increase the gold resources to 10 million oz in 2010.
Dr. Dabbagh reiterated that the increase in gold prices in the international gold market will accelerate the mining investment and will encourage the investor to seize the mining opportunities in the precious metals in the Kingdom.
Dr. Dabbagh indicated that the government is intending to offer 40 percent of Maaden in an initial public offering (IPO).