RIYADH: Saudi Arabian Mining Co. (Maaden) significantly broadened its mining interests by signing a SR95 million contract with Al-Olayan Descon for the construction of a new mineral processing plant in Madinah.
Included in the deal is the building of mine infrastructure at the Al-Gazalah Magnesite (Magnesium Carbonate) deposit, 160 km southwest of Hail, to extract mineral and supply the plant. Work at both sites will begin as soon as the logistics are in place.
Maaden, Saudi Arabia's largest mining firm by market value, did not say how much a stake it will hold in the joint-venture.
"We are delighted to be working with Al-Olayan Descon which expands Maaden's growing industrial minerals portfolio," commented Abdallah Dabbagh, president & CEO of Maaden.
He added that the company has generated new domestic lines of supply for the mineral and brought employment to the area and that the necessary licensing procedures for the project have been concluded. Maaden has also completed extensive environmental and social impact studies compliant with the company's standard procedure for the development of new projects.
The mine will produce around 140,000 tons of magnesium carbonate, known as magnesite, per year for the next 20 years. The ore will be transported from the mine to the new plant in Madinah where processing facilities will include kilns and furnaces for calcining and sintering raw materials at temperatures of up to 2,000 degrees centigrade.
Magnesium carbonate is used in a wide variety of industrial process and consumer products including agriculture, construction, fuel additives and environmental applications and dead burned magnesia for glass and refractory production. Significantly for Saudi Arabia, it is used extensively in chemical and environmental applications (notably in water treatment and gas desulfurization). Commonly used in salt to keep it dry and in proprietary digestive remedies and laxatives, the chemical is also used as a drying agent for hands in rock climbing, gymnastics and powerlifting.
Much of the output from Madinah, however, will be further processed at the site to produce added value monolithic refractories for lining furnaces used in the steel industry.
Maaden is investing about SR60 billion to develop the Kingdom's phosphate, bauxite, gold and industrial minerals and help reduce its reliance on oil. Last year, Maaden's gold output reached 146,000 ounces.
By Roger Harrison
© Arab News 2009