Our previous article explained about the originality of one and only Saudi Arabian mining company, Ma’aden. Where you can read it here. In order to see where the opportunity is with Ma’aden, we need to know deeper about their business and their prospect. We will now present to you about one of their backbone subsidiaries Ma’aden Gold and Base Metals.
Ma’aden Gold and Base Metals, the Ma’aden backbone
Ma’aden’s Gold and Base Metals manages the production and sale of gold, copper, silver and zinc, with gold accounting for the biggest share segment. Gold enjoys a special status in the Ma’aden business mix. It is the most well-known of their product lines, with a history reaching back to the beginnings of recorded time: Mahad Ad Dhahab (‘cradle of gold’) mine was actively mined as early as 3000 years ago. Gold was the first commodity mined by Ma’aden and provided the foundation of subsequent growth and diversification. Some people believe this ancient mining site was the resource of gold during the era of prophet Sulayman (King Solomon).
Ma’aden Gold and Base Metals Company (MGBM), Ma’aden wholly owned subsidiary, is the backbone of their gold business, producing over 330,000 ounces of the precious metal in 2017. Gold accounts for the majority of MGBM’s revenue, with copper, silver and zinc accounting for the remainder. Ma’aden’s 2025 strategy aims to increase the company’s gold production to 1 million ounces per year.
Gold deposits are located throughout the Central Arabian Gold Region (CAGR), a geological area extending from the Red Sea coast to the middle of the country. Development of the CAGR has been challenging due to its remote location and limited water availability.
Ma’aden has opened up new mines by developing a 450 km pipeline to bring treated wastewater from the municipality of Taif to the site of the planned gold mines. This environmentally sustainable solution is the first instance of the large-scale use of treated waste water for industrial purposes in the Kingdom.
MGBM operates six gold mines (Ad Duwayhi, Mahd Ad Dhahab, Al Amar, Bulghah, Sukhaybarat and As Suq) and one copper mine (Jabal Sayid).
While for Jabal Sayid mine site, Maaden made a 50-50 joint venture with Barrick, Canadian mining company, named Maaden Barrick Copper Company (MBBC). MBCC account for copper production from their underground copper mining company with small gold and silver for the remainder. This mining is the first mining using treated waste water from municipal area for milling processing plant and Barrick newly patented method using Sodium Meta Bisulfat (SMBS) as depressant for salted or brackish process water according to report from Barrick.
MGBM has a bright future as they’ve a lot of operated mine, newly opened mine like Ad-duwayhi, new projects, undeveloped mine as well as their exploration activity through the Kingdom. We will present the details on the next article.