Abdallah Saif Al-Saif said the state-run miner's existing
mines contained 10 million ounces of gold resources in 2009.
"Maaden is going to centralize exploration activities,
to give it more focus," he told Reuters. "We have a plan to develop
about four gold mines in the central area that will make up (for) the decline
in other mines.
"I think it will be hopefully within two to three
years."
Maaden is spending about SR60 billion ($16 billion) to
develop the Kingdom's phosphate, bauxite, gold, industrial minerals and others.
Saudi Arabia, home to the world's largest oil reserves,
is keen to develop its mining industry to diversify the economy away from oil.
The Kingdom has one of the largest phosphate deposits in the world as well as
large bauxite deposits and other base metals.
Most of Saudi Arabia's oil comes from the Eastern coast,
while minerals are located in the Arabian shield, on the western coast of the
world's top oil exporter.
Maaden currently operates five gold mines; Mahd ad Dahab,
Al-Hajar, Sukhaybarat, Bulghah, and Al-Amar.
The US Geological survey reported in its 2008 minerals
yearbook that the Mahd ad Dahab mine was expected to be shut in 2013.
But Al-Saif said Maaden had managed to reduce the decline
rate of the mine with new technology, extending its life by many years. He did
not give further details.
Maaden plans a 400-kilometers water pipeline to bring
sewage treated water from Taif, in the western region, to the more Central
Arabian Gold Region (CAGR) where it has identified gold mines, he said,
addressing potential water supply problems.
The firm currently produces about 166,000 ounces of gold
a year and aims to raise it once new facilities come on stream, Al-Saif added.
Al-Saif said the Arabian Shield - a mineral rich expanse
on the western coast of Saudi Arabia - is not well explored yet and Maaden was
putting together a medium to long-term program which would also cover copper,
zinc, nickel, iron, among other minerals.
"Demand for all metals is increasing, price is
improving and that justifies exploring and developing other minerals," he
added.
Gold was quoted at $1,381 an ounce on Monday, short of
the $1,430 an ounce record high it set earlier in December but still up around
26 percent on the year. Some industrial metals have set record highs or
multi-year highs recently.
Maaden and US Alcoa are building the world's largest
fully integrated aluminum complex in Ras Al-Zour, on the Gulf coast, fast
becoming Saudi Arabia's mining cluster.
The first phase includes a smelter, slated to start
commercial operations by the end of 2012, and a rolling mill due to come on
line in the first quarter of 2013.
Maaden holds a 75-percent share in the project. Alcoa cut
its stake from 40 percent earlier this year.
Al-Saif said Alcoa's share may go back to 40 percent five
years after the project's start-up.
The Maaden chairman said a planned diammonium phosphate
(DAP) plant would be fully operational in the second half of 2011. The facility
is part of a joint venture with Saudi Basic Industries Corp. and is slated to
produce 3 million tons per year (tpy) of DAP and 1.2 million tpy of ammonia.
Maaden estimates its current total phosphate deposits in
the Kingdom at 3.5 billion tons,
about 17 percent of global resources.
"This is what we have already identified which will
support our phosphate facilities for a long time, in fact we are looking into
expanding the phosphate production from other phosphate deposit areas, such as
Al-Khabra deposit," Al-Saif said.
Maaden plans to transport the ore to Ras Al-Zour by
railway - a plan originally slated to start in the fourth quarter but postponed
to February 2011, Al-Saif said, adding Maaden has already moved phosphate ore
to the site through trucks.
