JEDDAH, 12 September 2006 — The Saudi Arabian Mining Company (Maaden) signed a contract with the Saudi Canadian Mining Services here yesterday for transporting gold ore from the Bulgah mine to the Sukhaibayrat in Qassim region.
Prince Faisal ibn Muqrin, chairman of the board of directors of the Saudi Canadian Mining Services, and Muhammad Hani Al-Dabbagh, vice president for operations and head of the precious metals unit of Maaden, signed the accord.
The contract stipulates that Saudi Canadian Mining Services will transport the ore of Maaden’s Bulgah mine at a monthly rate of 50,000 tons to Sukhaibayrat.
The move is part of Maaden’s efforts to recruit the participation of the private sector in the metal manufacture and expand the industrial base in the Kingdom, Muhammad Al-Dabbagh said following the signing ceremony at Maaden office. It also aims to attract more private investment into the industry.
“The contract includes the transportation of the raw material from the Bulgah mine to the processing plants in the Sukhaibayrat,” Al-Dabbagh said.
The Bulgah facility manufactures 40,000 ounces of gold annually while Maaden’s total annual production of gold is estimated at more than 245,000 ounces, Al-Dabbagh said. Maaden is also producing other precious metals.
“Maaden could raise its gold reserves to eight million ounces through its ambitious prospecting operations exploiting the latest technology in drilling and prospecting. The company presently plans to scale up its gold reserves to 10 million ounces by 2010,” Al-Dabbagh said.
Ahmed Gulaid, president and CEO of Saudi Canadian Mining Services, told Arab News that the company has a huge surface drilling experience at different drilling locations in Saudi Arabia and Canada.
“Saudi Canadian Mining Services is capable of performing large scale contract mining including drilling, blasting surveying excavation, hauling service at very competitive rates within the shortest possible times,” Gulaid said.
“Saudi Canadian Mining Services has the innovation, experience and resources to meet your individual mining or exploration drilling need. It is through this innovative technology and depth of experience that made the company industry leader in the Middle East,” he added.
Maaden currently runs six mines for precious metals. Four of them — Mahd Al-Dahab, Sukhaibayrat, Bulgah and Al-Hajar — are fully operational. The Ammar mine, which is the first gold mine in the Central Region will be ready for mining early next year. The work at the Al-Dowaihi mine lying 125 kilometer to the southeast of Zalim, is progressing as per schedule and is scheduled to be commissioned in 2008.