ALKHOBAR: Saudi Arabian Mining Co. (Maaden) is reviewing its spending in the wake of low commodity prices but the chief executive of the Gulf’s biggest miner expects the company to stick with its project plans.

Khalid Al-Mudaifer said that the miner of gold and phosphate and aluminum producer was reviewing projects to ensure “they are really feasible under current market circumstances.”

He added: ”We are not canceling any projects but we are increasing scrutiny.” He said phosphate was one sector where prices had stabilized and demand was growing.

Mining is an important part of that strategy as it helps develop remote cities and create jobs but metals prices have also suffered, with aluminum touching six-year lows this week.

“Everybody is bleeding and we will have to suffer for a while. But where prices will go will depend on what China does with its excess capacity,” Mudaifer said.

Maaden has reported falls in net profit in the last two quarters but has weathered the tough conditions better than many because it has low production costs helped by efficient technology.

Among those suffering is US firm Alcoa, Maaden’s partner in a aluminum project which started operating last year.

Maaden has finished construction of its Ad Duwayhi mine which will help it double annual gold capacity from its current 150,000 ounces. It aims to produce 500,000 ounces per year, Mudaifer said.

Another project in the pipeline the Mansourah Massarrah gold mine.

Maaden is also awaiting Saudi Arabia’s new mining strategy due next year which is expected to call for developing the sector and attracting investment.

Saudi Arabia aims to generate SR260 billion in direct GDP from mining by 2035 and to create more than 100,000 jobs through more spent on exploration and developing the sector, Petroleum and Mineral Resources Minister Ali Al-Naimi said on Tuesday.

“Commodity prices are a challenge that may cause delay in the (ministry’s) plan but the plan will be realized,” Maaden’s Al-Mudaifer said.