Saudi mining sector gaining momentum
Publisher: Mineweb
Author: Reem Shamseddine
- http://www.mineweb.com/mineweb/view/mineweb/en/page72068?oid=96908&sn=Detail&pid=92730
- The Mineweb main article.
Saudi Arabia holds the world's largest oil reserves and is the biggest crude exporter, but it also has one of the largest phosphate deposits in the world and also holds precious metals.
A new mining law adopted in 2004 to allow greater access for foreign companies to the kingdom's mineral resources is beginning to bring results, mining executives said.
"I think that the mining industry in Saudi is going to start booming and we will see a lot more of foreign money pouring into exploration," said Ben Stockdale, commercial manager at Australian Citadel Resource Group (CGG.AX: Quote) said. The changes in the law and increasing knowledge of prospecting in Saudi Arabia has created the conditions for the boom, he added.
Citadel, through a joint venture company called Bariq Mining, owns a copper project in western Saudi Arabia called Jabal Sayid that it plans to develop. Jabal Sayid has ore reserves of about 24.4 million tonnes with about 2.2 percent of copper.
"We have just completed a bankable feasibility study into the development of that project and it is definitely economic," he added.
Over 10 years, the project would produce 57,000 tonnes of copper concentrate per year, he said. First production would be by the third quarter of 2011 if the company receives its licence soon, he said.
Citadel also plans to develop three projects of high grade gold, porphyry gold and copper, Stockdale said.
The new mining law allows for companies to work with Saudi's state-run Saudi Arabian Mining Co (Maaden) (1211.SE: Quote) or through joint ventures with local companies.
Maaden is spending 60 billion riyals ($16 billion) to develop the kingdom's phosphate, bauxite, gold and industrial minerals.
Australian minier Syrah Resources Ltd (SYR.AX: Quote) was looking for opportunities in gold, its chairman told Reuters.
"We seek spaces where we think the gold exploration has been very underdone, we are quite excited about the gold exploration," Syrah Chairman Tom Eadie said. It would also look for opportunities in base metals and particularly in copper, he added.
"We got interested because the mining regulations changed, so there are very prospective rocks that have never been explored with modern exploration," Eadie said. Syrah hoped it would be granted licenses it has applied for by the end of 2010. The company is focused on mineral deposits in the west coast of Saudi.
LICENSES
Twelve Australian companies planned to open offices in Saudi Arabia, said Andre Barbour, senior business development manager at the Australian Trade Commission in Saudi Arabia. They included Hatch, Syrah Resources and Ausenco (AAX.AX: Quote), he added.
But a tardy licensing process in the kingdom had slowed development down, industry sources said.
"The department at the ministry is being overwhelmed with applications... procedures are not smooth and regulated enough," Michael Ware, exploration manager at Syrah said. "There are opportunities elsewhere but the good thing about Saudi is the potential is very, very significant in gold and base metals."
Seven types of mining licences are available from the Saudi Ministry of Petroleum and Mineral Resources. The new code reduced the area covered in licences from 10,000 square kilometres to 100 square km.
WATER, INFRASTRUCTURE
Lack of water resources is one of the main challenges crippling potential gold projects, Abdullah al-Dabbagh, chief executive of Maaden told Reuters last year.[ID:nLR457610]
Maaden had said several of its projects rely on the successful development and operation of several substantial infrastructure projects, including a port and a railway project.
The industry also lacks the services and contractors that it needs to grow more quickly, Barbour said.
"The industry lacks local contractors who work in the mining sector...There are not enough companies and demand is higher than that," Barbour said.
"Foreign companies will ask for certain logistics. They need drilling, mining exploration, manpower and companies who provide these services. This would facilitate the development of the industry which is very promising," Barbour added.
MENA-EX to attract 130 firms
Publisher: MENAFN - Arab News
Author: Shaheen Nazar
The third meeting of MENA-EX (International Exhibition and Forum for Mineral Exploration, Investment and Application) is likely to attract over 130 local and foreign companies including 60 firms engaged in exploration and mining within the Kingdom, said Talat Idris, head of Global Ozone International Conference and Exhibition, the organizers. Idris said economists and experts believed the mining projects in the area were worth $11 billion.
Backed by the Ministry of Petroleum and Mineral Resources, the Saudi Geological Survey (SGS), Maaden, Austrade and the South African Department of Trade and Industry are the major sponsors of the event.
Among the topics to be discussed at the forum will be opportunities in the mining sectors of the Arabian Shield, mining as an investment, mining laws and regulations, developing infrastructure to support mining and the successful investment climate in MENA region in the current worldwide climate.
Ma'aden and Alcoa Forge Partnership to Develop Lowest-Cost Aluminum Complex in the World
Publisher: Ma'aden
Author: Aqeel Alonazi - Ma'aden Corporate Communications Department
In its initial phases, the joint venture will develop a fully integrated industrial complex, including:
- A bauxite mine with an initial capacity of 4,000,000 metric tons per year (mtpy);
- An alumina refinery with an initial capacity of 1,800,000 (mtpy);
- An aluminum smelter with an initial capacity of ingot, slab and billets, of 740,000 mtpy; and
- A rolling mill, with initial hot-mill capacity of between 250,000 and 460,000 mtpy. The mill will focus initially on the production of sheet, end and tab stock for the manufacture of aluminum cans, and potentially other products to serve the construction industry. It will be one of the most technically advanced mills in the world.
The refinery, smelter and rolling mill will be established within the new industrial zone of Raz as Zawr on the east coast of the Kingdom of Saudi Arabia. The complex will utilize critical infrastructure, including low-cost and clean power generation , as well as port and rail facilities, developed by the Kingdom's government. Bauxite feedstock for the planned alumina refinery will be transported by rail from the new mine at Al Ba'itha, near Quiba, in the north. The project will be developed and financed in two phases, with the rolling mill and smelter in the first phase. First production from the aluminum smelter and rolling mill is anticipated in 2013, and first production from the mine and refinery is expected in 2014.
Capital investment is expected to be approximately SAR40.5 bn ($US10.8 bn), subject to the completion of detailed feasibility studies and environmental impact assessments. Ma'aden will own 60% of the joint venture, Alcoa and its partners will own 40%.
In welcoming the new venture, Dr. Abdallah Dabbagh, President and CEO of Ma'aden, said, "Alcoa's partnership in all aspects of this integrated industry brings with it enormous value not only in terms of technology, resources and experience but also a proven commitment to sustainability." He added, "A focus on quality alongside the robust economics of the project will ensure its leading role in advancing Saudi Arabia and the region as a major hub for the aluminum and downstream sectors."
Alcoa President and CEO Klaus Kleinfeld said, "This joint venture is a once-in-a-generation opportunity for Alcoa, for Ma'aden and for the Kingdom of Saudi Arabia. We are creating a fully integrated aluminum complex that will be the most technologically advanced and cost efficient in the world. By changing the operating dynamics and cost base within our industry, the complex will be a model for the growth of aluminum in competition with other metals and is designed with the potential for future expansion. The joint venture leverages the unique strengths of both Alcoa and Ma'aden to create substantial value for our investors, customers and partners."
Alcoa will provide know how, management expertise and support during the design, construction and operation of the mine, refinery, smelter and rolling mill. Alcoa will also arrange the supply of alumina feedstock to the smelter from outside the Kingdom until the project refinery comes on stream. Alcoa and Ma'aden will work with leading international and local firms in the design and construction of the complex.
Ma'aden's Chairman, Engineer Abdullah Saif Al-Saif, added that the Saudi government's investment in critical national infrastructure is proving to be a catalyst for this and other projects. "The positive impact of the government's vision in developing the Kingdom's infrastructure including the new railway network and deepwater port at Ras Az Zawr is clearly demonstrated by the realization of this industry and others such as phosphate. Collaboration in clean efficient power generation also ensures that it is both highly competitive and sustainable."
Saudi Arabia - Ranks 13 in World Bank Doing Business 2010 report
Publisher: The World Bank
The World Bank Doing Business 2010 report ranks 181 economies on the ease of doing business.
Doing Business 2010 is the seventh in a series of annual reports investigating regulations that enhance business activity and those that constrain it. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 183 countries, from Afghanistan to Zimbabwe, over time.
Saudi Arabia, continues to be a top regional reformer. Saudi Arabia expedited the process for dealing with construction permits by introducing a one-day permit procedure, enabling builders to obtain a temporary building permit allowing them to begin construction after one day and a final building permit after one week. Business start-up was eased with the creation of a one-stop office at the Ministry of Commerce that merged registration procedures and simplified publication requirements.
Saudi Arabia - Ranks 16 in World Bank Doing Business 2009 report
Publisher: The World Bank
The World Bank Doing Business 2008 report ranks 181 economies on the ease of doing business.
Doing Business 2009 is the sixth in a series of annual reports investigating regulations that enhance business activity and those that constrain it. Doing Business presents quantitative indicators on business regulations and the protection of property rights that can be compared across 181 countries, from Afghanistan to Zimbabwe, over time.
Two-thirds of countries in the Middle East and North Africa reformed. 12 countries introduced 27 reforms to make doing business easier in the MENA region this year. The most popular reform was in the area of business start-up, with 9 countries reforming. This has been the most popular reform in the region over the last 5 years. Enhancements to credit bureaus were the second most popular reform in the region. This year there were no major reforms in employing workers, getting credit (legal rights) or enforcing contracts in the region..
Saudi Arabia, a top regional reformer, made it easier to start a business by continuing to simplify formalities for commercial registration and reducing registration fees by 80%. The time to start a business fell by 3 days. Saudi Arabia strengthened protections for minority shareholders through new provisions that prohibit interested parties from voting on the approval of related-party transactions and increase sanctions against directors for misconduct. It sped the registration of property with a comprehensive electronic system for registering title deeds. And it was the only reformer in the region in the area of closing a business this year. Its Ministry of Commerce introduced strict deadlines for bankruptcy procedures. Auctions of debtors' assets are expected to take place more quickly than before.