As a first step toward privatisation, the Saudi Arabian Mining Company - Ma'aden - will establish a unit to study and evaluate the Kingdom’s precious base metals sector, commencing on 1 January 2005.
On 19 May, the Supreme Economic Council (SEC) approved the privatisation of Ma’aden, a 100% public company wholly-owned by the Ministry of Petroleum and Mineral Resources. The company will be privatised into four strategic units handling precious and basic metals, phosphates, bauxite and aluminium and industrial minerals.
The proposed precious and base metals unit, directed by M. Hany Al-Dabbagh, Ma’aden’s Vice-President for Operations, will embark upon a study and assessment of the Kingdom’s gold mining sector to determine to what extent privatisation can be achieved. The unit will contract an international bank to carry out the task, the Saudi Gazette quoted Al-Dabbagh as saying.
Ma'aden hopes to become a profitable, diversified mining company, exploring, developing and extracting minerals in the Kingdom. The company is set to achieve that goal, with gold mines such as Mahd Al-Dahab, Sukhaybarat, Bulghah and Al-Hajar under operation, while Al-Ammar and Ad-Duwayah mines will commence operation by next year.
Last year, Saudi Arabia produced 282,000 ounces of gold. Ma’aden’s geologists are currently reviewing a number of gold and base metal deposits in the Arabian Shield. The company has already identified additional reserves at Mahd Ad-Dahab, while at Sukhaybarat it has extended the life of the mine in operation, Al-Dabbagh said.
Source: SPA
