JEDDAH – Saudi Arabian Mining Company (Ma'aden) plans to increase its annual production of gold to 400,000 ounces by the year 2015, the National Commercial Bank said Monday in its report on the Saudi gold industry. It said Ma'aden's gold and base metals business is carried out through its largest subsidiary Ma'aden Gold and Base Metals Company (MGBM). MGBM or Ma'aden Gold operates five gold mines in the Kingdom which have produced over 4 million ounces of gold since 1988. Ma'aden Gold 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 in the Kingdom. Ma'aden Gold concluded in February 2012 an agreement worth SR1 billion to implement Al-Duwayhi Gold Mine Project. The project, with an annual productive capacity of 180,000 ounces of gold, is expected to go on stream in 2015. In October 2012, the company won the permit from the Ministry of Petroleum and Mineral Resources to explore gold and metals in 48 fields in Ghardawiyah, located between Madinah and Al-Qassim provinces. In the end of 2012, four gold exploration licenses were given to a Saudi-Turkish consortium, in which it will have 40 percent stake in the exploration project, to be implemented together with Abdurahman Saad Al-Rashid and Brothers Co. The project targets exploration and development of one million ounces of gold ore in the Arabian Shield Region. Ma'aden Gold was established in 2004 with a paid-up capital of SR300 million. In 2012, net profit of Ma'aden from gold operations reached SR441 million, an increase of 13 percent compared to the previous year. The company's gold mines are located in Mahd Al-Dahab, Sukhaybarat, Bulghah, Al Hajar and Al Amar. In 2012, Al Amar mine recorded major stake in production of Ma'aden's gold in the Kingdom, reaching up to 52,531 ounces. It also made up 39 percent of gold sold during the year. Ma'aden Gold is playing a great role in the Kingdom's gold mining and manufacturing industry, NCB said in the report. As gold prices fell in the global market in 2013, the local demand in Saudi market rose 15.4 percent to 39.7 tons in the first half of 2013. Ma'aden's gold production fell seven percent to 137,787 ounces (3,884 kg) in 2012. NCB forecast that competition and fluctuation in prices of gold in the world market would lead to exit of several small retailers from the market. These traders rely heavily on bank credit to remain in the market. However, local banks see it difficult for them to have long- term credit relations with these retailers. — SG
