RIYADH: Saudi Gold Refinery Co. is working toward becoming the second largest mining company in the Kingdom thanks to the support offered by the government authorities, said its chairman.
In an interview with Arab News on the sidelines of the Future Minerals Forum, Suliman Al-Othaim said that SGR is eyeing to multiply its gold production by 10 times, as Saudi Arabia positions itself as a global mining hub.
“We now have three mines internationally in Morocco, Uzbekistan and Kurdistan. We are looking to become a multinational company and to be transferred as a public company by 2030. We came to be a big employer in Saudi Arabia, and the second company or the top 10 company in Saudi Arabia’s mining sector,” he said.
By implementing advanced research, SGR is trying to ramp up its gold ore production to 100 tons by 2027, according to Al-Othaim.
“We produce around 2 tons every year. The total production in Saudi Arabia is around 10 tons every year, and the majority of the producer is Ma’aden, which contains about 80 percent. We are all interested in multiplying our target by 10 times,” said the chairman.
He added: “We are researching more resources for our mines to develop and to triple the production to a higher stage. We are keen to transform from producing 6,000 cubic meters of ore every month to about 20,000 during 2024-25, and increase it to 40 tons by 2026, and up to 50 or 100 tons by 2027.”
Al-Othaim further noted that the new mining law introduced by the government in Saudi Arabia has benefited private sector firms operating in Saudi Arabia.
He also lauded the efforts of the Ministry of Industry and Mineral Resources and the Ministry of Finance which are currently strengthening local companies in the Kingdom.
“Saudi Arabia is transforming itself as a big player in the mining sector. The minister, Bandar Alkhorayef, and the deputy minister, Khalid Al-Mudaifer, they are doing their best to support the local companies, their rights, and solve their problems,” the chairman explained.
Al-Othaim added: “Khalid Al-Falih, the minister of investment, is hoping for the sky, and scope for collaboration in all kinds of business including the minerals, for the Saudi companies to coordinate in the world with other international firms.”
Talking about the future of the gold market, he said that the price of the metal will rise in the coming years.
“Gold will remain forever. It is a solid material, a solid fund regardless of any kind of currency. All the time, gold over the years, will go, up, and up, and up. If you see 40 years, 60 years ago, the gold price, it just goes up. In another 40 years, it will still go up,” the chairman concluded.
