Outotec, India's L&T sign Ma'aden's $606m EPC gold mine contract

Deal inked for Saudi Arabia's Mansourah and Massarah project that will produce 250,000 ounces of gold each year

L&T and Outotec will work on Ma'aden's gold project.
Pixabay
L&T and Outotec will work on Ma'aden's gold project.

A consortium of India's Larsen and Toubro (L&T) and Finnish firm Outotec has signed a $606m (SAR2.7bn) engineering, procurement, and construction (EPC) contract with Saudi Arabian Mining Company (Ma’aden) for the two-site Mansorah and Massarah gold mine factory in Saudi Arabia.

The contract, according to a 21 July filing on Saudi bourse Tadawul, includes complete EPC, pre-commissioning, start-up assistance, and training services.

With works expected to last three years, initial gold production at the project – expected to produce 250,000 ounces of the precious metal each year – will start in Q2 2022.

Ma’aden subsidiary Gold and Base Metals Company awarded the contract, with construction on the project to start from the date of the contract being signed, as outlined in Ma’aden’s latest bourse filing.

The news comes nearly three months after the EPC contract was originally announced through a similar Tadawul filing.

Ma’aden’s Mansorah and Massarah project comprises two 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 system marked “the first instance of the large-scale use of treated wastewater for industrial purposes in the kingdom”.

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