Saudi Arabian Mining Company (Maaden) anticipates reaching nameplate capacity at the Mansourah-Massarah gold processing plant this year after ramping up production.

The facility, which started commercial production last month, is expected to produce 250,000 ounces of gold annually.

Early construction works are now underway at the Phosphate 3 Complex Project, which will add more than 1.5 metric tonnes of production per annum once completed, the multi-commodity and mining giant    said in its 2023 financial results statement to the Saudi stock exchange.

Market view

The company said the global phosphate market is expected to remain stable in 2024 due to improved affordability and low inventory in key markets.

Furthermore, Maaden foresees an upswing in ammonia demand driven by increased phosphate and nitrogen fertiliser production.

Following a slowdown in global manufacturing activities, the aluminium market is expected to stabilise in 2024 given improving demand in North America and Europe alongside the anticipated recovery in China, it noted in the statement.

Flat Rolled Products (FRP) demand is set to gradually improve due to the end of inventory destocking and growth in the electric vehicles and packaging markets.

Cost increases

In the context of Aramco increasing fuel product prices since January 2024, Maaden noted that although the prices of natural gas and diesel used in operations will rise slightly from the first quarter of 2024, the total annual cost of sales is expected to increase by nearly 3.2 percent, based on the latest audited annual financial statement.

The completion of 10 percent stake in Vale, Brazil's base metals company, by Manara Minerals, a joint venture between the Public Investment Fund (PIF) and Maaden, remains on track for the first quarter of 2024, subject to regulatory approvals, it said.

On attacks disrupting commercial shipping in the Red Sea, the company said: “We continue to monitor disruptions in the Red Sea and work with our customers to minimise impact.”

(Writing by D Madhura; Editing by Anoop Menon)


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