JEDDAH, 24 January 2006 — Mohammad Hani Al-Dabbagh, vice president-operations of Saudi Arabian Mining Company (Maaden) and president of the company’s strategic gold unit, said at a press conference, held here yesterday, that his company approved a plan to extract 100 tons of gold from gold mines in the Kingdom over the coming ten years.
Al-Dabbagh also said that the Saudi Lazurde Group won the bid of Maaden gold extraction. According to the bid contract, all the gold extracted in the coming three years would be under the exclusive use of Lazurde Group. He added that the contract period, which started this January, is extendable. The contract was put for public bid and Lazurde Group came up with the best offer, according to Al-Dabbagh. Maaden’s vice president added that the company, which has a total capital of SR4 billion ($1.06 billion), would place its stocks for public underwriting in the stock market after it finishes the necessary procedures. Al-Dabbagh said that Maaden’s total production of gold is estimated at 250,000 ounces per year. The current price per ounce of gold is around $540. The global increase in gold prices motivated the company to increase its production of gold. It is expected that the company’s production would increase to 400,000 ounces per year. He said that Maaden is working on a number of gold mines in the kingdom including Mahd Ad Dahab, Al-Hajar, Bulgah and Al-Amar mines.
Abdul Aziz Al-Othaim, chairman of the board of Lazurde Group for industrial investment, said that his company’s factory in Riyadh is one of the four largest in the world. He described the contract as new achievement to his company and this will motivate the group to expand. Al-Othaim said that Saudi Arabia gained good reputation in the international market for the production of gold.
