KHOBAR: Saudi Arabian Mining Co (Ma'aden) will boost exploration in the vast Arabian Shield region and develop new mines in a bid to double gold resources to 20 million ounces by 2020, its chairman said. Abdallah Saif Al-Saif said the state-run miner's existing mines contained 10 million ounces of gold resources in 2009. "Ma'aden 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." Ma'aden is spending about SR60 billion ($16 billion) to develop the Kingdom's phosphate, bauxite, gold, industrial minerals and others. Saudi Arabia 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. Ma'aden 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 Saif said Ma'aden 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. Ma'aden plans a 400-km 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, Saif added. Saif said the Arabian Shield - a mineral rich expanse on the western coast of Saudi Arabia - is not well explored yet and Ma'aden 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. Ma'aden and US Alcoa are building the world's largest fully integrated aluminum complex in Ras Az Zawr, on the Gulf coast, fast becoming Saudi Arabia's mining cluster.
