27 December 2003
RIYADH — Two of the Kingdom’s most prominent gold mines — Mahd Ad-Dahab in Madinah and Sukhaibarat in Al-Qassim — are to be shut down in 2005.
Mahd Al-Dahab, which means golden bed, has been known for 3,000 years.
The mine, with a workforce of 270, produced 35 tons of gold during its 15 years of operation, with gold production ranging from 36,000 to 160,000 ounces per annum. Sukhaibarat, with 180 employees produced about 22 tons of gold during the same period.
Both mines will be closed once new mines become operational over the next two years. This would allow for a smooth transition of staff, with relocation and retraining prior to their absorption in other mines currently under development.
New regulations are in place to step up prospecting and mining activities, and also to increase the private sector’s involvement in the industry.
Dr. M. Hany Al-Dabbagh, vice president of operations, Saudi Arabian Mining Company (Maaden), told Arab News that the normal life span of a mine is seven years, although Mahd remained operational for 15 years. During this period, exploratory work has been under way to develop other gold mines — Al-Ammar and Ad-Duwaihy — in the Central Province.
The Arabian Shield has 4,000 probable sites where gold could be mined, but whether they are economically viable is determined by an exploratory survey.
Dr. Al-Dabbagh said the main factor that kept the mining operations going for so long was the escalating price of gold.
“The higher the gold prices, the lower the cut-off grade. That’s how we kept Mahd running for 15 years when it should have been closed after seven. Now we want to keep Mahd and Sukhaibarat alive until the Al-Ammar gold mine is producing,” he said.
Work on Ad-Duwaihy will begin in three years.
Dr. Al-Dabbagh said Maaden has a workforce of 600 employees, 50 percent of whom are Saudi. “During the initial phase of the transition period, preference will be given to Saudi personnel whose jobs in the existing mines are going to be affected. However, we will
also need expatriates with specialized skills to train the Saudis,” he added.
RIYADH — Two of the Kingdom’s most prominent gold mines — Mahd Ad-Dahab in Madinah and Sukhaibarat in Al-Qassim — are to be shut down in 2005.
Mahd Al-Dahab, which means golden bed, has been known for 3,000 years.
The mine, with a workforce of 270, produced 35 tons of gold during its 15 years of operation, with gold production ranging from 36,000 to 160,000 ounces per annum. Sukhaibarat, with 180 employees produced about 22 tons of gold during the same period.
Both mines will be closed once new mines become operational over the next two years. This would allow for a smooth transition of staff, with relocation and retraining prior to their absorption in other mines currently under development.
New regulations are in place to step up prospecting and mining activities, and also to increase the private sector’s involvement in the industry.
Dr. M. Hany Al-Dabbagh, vice president of operations, Saudi Arabian Mining Company (Maaden), told Arab News that the normal life span of a mine is seven years, although Mahd remained operational for 15 years. During this period, exploratory work has been under way to develop other gold mines — Al-Ammar and Ad-Duwaihy — in the Central Province.
The Arabian Shield has 4,000 probable sites where gold could be mined, but whether they are economically viable is determined by an exploratory survey.
Dr. Al-Dabbagh said the main factor that kept the mining operations going for so long was the escalating price of gold.
“The higher the gold prices, the lower the cut-off grade. That’s how we kept Mahd running for 15 years when it should have been closed after seven. Now we want to keep Mahd and Sukhaibarat alive until the Al-Ammar gold mine is producing,” he said.
Work on Ad-Duwaihy will begin in three years.
Dr. Al-Dabbagh said Maaden has a workforce of 600 employees, 50 percent of whom are Saudi. “During the initial phase of the transition period, preference will be given to Saudi personnel whose jobs in the existing mines are going to be affected. However, we will
also need expatriates with specialized skills to train the Saudis,” he added.
Javid Hassan
© Arab News 2003
