L&T, Outotec consortium wins $606m Ma'aden gold factory award
The Mansourah and Massarah gold factory project in Saudi's central region will produce an average of 250,000 ounces a year
A subsidiary of Saudi Arabian Mining Company (Ma’aden) has awarded a $606m (SAR2.7bn) construction contract to a consortium of Larsen and Toubro (L&T) and Finnish firm Outotec for a two-site Mansorah and Massarah gold mine factory.
The contract, according to a filing on the Tadawul, includes complete engineering, procurement, construction, pre-commissioning, start-up assistance, and training services.
Construction is planned to start from the date of the signing the contract, with initial production expected to start in Q2 2022, followed by commercial production in the following quarter. The mine will produce an average of 250,000 ounces of gold a year.
Ma’aden subsidiary Gold and Base Metals Company awarded the contract.
Further information was not revealed in the 30 April bourse missive, although Ma’aden said financing details and more project insights will be announced “in due course”.
"This project is an important element of our strategy to increase our gold production to one million ounces a year," said Darren Davis, chief executive officer of Ma'aden, in a seperate statement.
"Our continued growth in the Kingdom will create many direct and indirect job opportunities in the Saudi economy and contribute to the development of communities around our operational areas.”
Ma’aden’s Mansorah and Massarah project comprises two separate neighbouring sites that contain gold dioxide in the upper layers, under which there are metal gold-bearing sulphides.
One site is located in Massarah, 67km east of Zilm province in Saudi’s Makkah Region, with the other 460km north-east of Jeddah in Mansourah.
Ma’aden said it had overcome the challenge of developing mines in the central region by developing a 450km pipeline that will bring treated wastewater from Taif for use in the facilities.
The group, which operates six gold mines across Saudi Arabia under its base and precious metals subsidiary, said the solution is “the first instance of the large-scale use of treated wastewater for industrial purposes in the kingdom”.