Maaden in SR1bn gold mining deal

Saudi Arabian Mining Company Ma'aden announced yesterday that its affiliate Ma'aden Gold and Base Metals Company (MGBM) has signed a contract for the establishment of Al-Dowaihi Plant for Gold Production with a South Korean company at a cost of more than SR 1 billion. The plant will refine annually about two million tons of ore from Al-Dowaihi mine in the Makkah province scheduled to operate in 2015, said Ma'aden Executive President Khaled Al-Mudaifer yesterday. “The plant will produce on average 180,000 ounces of net gold annually, which is equivalent to 1.6 million ounces during the initial expected life of the mine,” Al-Mudaifer said. MGBM operates five gold mines in the Kingdom, which have produced more than 4 million ounces of gold since 1988. MGBM is developing a new gold zone in the Central Arabian Gold Region (CAGR) and also carries out an extensive precious and base metals exploration development program. Mahd Al-Dahab Gold Mine in Madinah is one of the oldest mining sites in Saudi Arabia, with carbon dating of ancient slag indicating two separate periods of mining activity.