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Saudi Arabia’s Largest Gold Mine: Production Commencing in 2022

Saudi Arabia's largest gold mine will begin production in the first quarter of 2022, as the Kingdom seeks to expand its reserves extraction. Renewable energy now accounts for 13% of the project's energy needs in the Makkah area, with plans to enhance that figure. The whole Kingdom of Saudi Arabia is awaiting its launch.

Commencement of Trial Production

Saudi Arabian Mining Company (Ma'aden) has begun trial production at the Ad Duwayhi gold mine in Saudi Arabia. This is Ma'aden's biggest mine to date and is a critical component of the company's plan to construct multiple new gold mining facilities in Saudi Arabia's central-western area, which houses the majority of the Kingdom's gold ore reserves.

Ad Duwayhi is predicted to produce 180,000 ounces of gold per year at full capacity. With the addition of Ad Duwayhi Ma'adens, the company's yearly gold output capacity would climbed to 340,000 ounces.

This is a critical step in expanding Ma'aden's portfolio with an additional large-scale gold project that generates considerable shareholder value while also contributing to the development of a sustainable local community. Ma'aden is pursuing a long-term strategy of sustained growth that balances market responsiveness with the creation of high-impact projects.

Ad Duwayhi Gold Mine

Ad Duwayhi is one of many new gold mines that Ma'aden is building in the Central Arabian Gold Region, made possible by the company's 430-kilometer-long treated wastewater pipeline from At Taif to the mining site. This US$ 160M pipeline allows Ma'aden to continue developing new mining ventures in the area without draining significant amounts of the region's valuable water resources.

The business said in a statement that the mine in western Saudi Arabia has reserves of 1.9 million ounces as of December 31. The open-pit operation contains a typical gold extraction facility with crushing and milling facilities, gravity concentration, and smelting facilities for on-site production of gold doré prior to transportation to Jeddah.

Ma'aden also announced in a separate news release that the Jabel Sayed copper mine would postpone commercial production surpassing the first quarter "to allow for the completion of final mechanical testing."

Ma'aden launched a joint venture with Barrick Gold in 2014, acquiring 50% of Barrick's Jabal Sayed mine for $210 million. Toronto-based Barrick purchased the Jabal Sayed property in 2011 as part of its acquisition of copper producer Equinox for US$6.8 billion. The majority of work at the site had been completed for some time. However, production was delayed due to permit challenges relating to safety and legacy mining licensing concerns.

Conclusion

Ma'aden Gold and Base Metals Firm, a wholly-owned subsidiary of Ma'aden, had inked a $270 million engineering, procurement, and construction (EPC) deal with a Korean company to build Ad Duwayhi, which includes provisions for operational assistance and workforce training. The mine should make a substantial difference to Saudi Arabia's precious metals export market.