Saudi Arabia and Sudan are targeting a 2014 start for deep-water mining of a Red Sea basin believed rich in gold and copper.
Manafa International Trade Company of Saudi Arabia and its joint venture partner Diamond Fields International Ltd. of Canada received a license in 2010 to explore the area about 115 km west of Jeddah.
“It is already started and it’s underway,” Minister of Petroleum and Mineral Resources, Ali Al-Naimi, said on the sidelines of a regional mining conference.
He stressed that Saudi total investments in mining field amounted to about $ 50 billion, indicating that the total mining licenses granted to exploit the mineral resources in the Kingdom amounted to 1,700 licenses covering an area of more than 73,000 square km.
Sudan’s Minister of Mining Kamal Abdel Latif said: “We are expecting starting production maybe 2014.” He said reserves are “very huge” at 150 tons of gold and more than one million tons of copper. However, Diamond Fields has reported estimated copper reserves at less than half that amount.
Diamond Fields said last month that it is scheduled to meet in December with “third parties to discuss possible financing options” for the Red Sea project.
Sudan and Saudi Arabia signed an agreement in 1974 to exploit the Red Sea’s resources. Sudan is trying to boost exports after the separation of South Sudan last year left Khartoum without three-quarters of its crude production.
KSA, Sudan eye 2014 start for gold mining in Red Sea
