National Gypsum qualified for phase I of gypsum ore exploration tender in Madinah: Chairman

Khalid Al-Ghadeer Chairman of National Gypsum Co. (NGC)

National Gypsum Co. (NGC) was prequalified for the first phase of the tender for the gypsum ore exploration in the Madinah region on a total area of 0.6 square kilometer, Khalid Al-Ghadeer, Board Chairman and Member of the National Committee of Gypsum Factories, Federation of Saudi Chambers, told Argaam in a phone call.

The Ministry of Industry and Mineral Resources will allow the prequalified companies to view the geological and engineering maps and data in the second phase, which shows the depth and type of the gypsum ore. These companies will be also allowed to take samples and conduct the required studies.

“This step will help the prequalified firms decide whether or not to proceed, set their strategies and objectives based on the availability of the gypsum ore,” Al Ghadeer added.

He explained that NGC has its own inventory of the ore, as it holds concessions in each of Riyadh and Yanbu, in addition to quarrying licenses in Dammam. If the company wins this license, its inventory will increase.

Al-Ghadeer added that the gypsum ore is one of the rare metals in the Kingdom. It is used in production processes, and makes up almost 5% of cement production.

He added that the proximity of the mining site to the company's factory in the Royal Commission for Light Industries will benefit it. "It is too early to talk about the volume of investments and production capacities. This will be determined after reviewing all information about the mining site in the second phase," the top executive said. 

On Oct. 10, the Ministry of Industry and Mineral Resources announced the prequalification of eight local companies to compete for a license to explore gypsum ore in the mining complex at Al-Qasab wells, south of the Nabat District, Madinah, over an area of ​​about 0.6 square kilometers. 

The prequalified companies are United Industrial Cement Co., Gypsco, Global Gypsum Co. Ltd., El-Khayyat Gypsum Ltd., United Mining Industries, Yanbu Gypsum Company for Industry, Mada Gypsum and Ask Gypsum Factory.