Saudi Gold Refinery eyes 5M-ounce output by 2028 pre-IPO: Chairman

Suliman Al-Othaim, Chairman of Saudi Gold Refinery Co. (SGR)

Suliman Al-Othaim, Chairman of Saudi Gold Refinery Co. (SGR), said the company is targeting boosting its production gradually till reaching five million ounces by 2028, ahead of its planned initial public offering (IPO) between 2028 and 2030.

In an interview with Argaam on the sidelines of the Future Minerals Forum, Al-Othaim expected SGR to have six to 10 new mines operational before the IPO, supported by the Ministry of Industry and Mineral Resources, the Saudi Industrial Development Fund (SIDF), and Saudi banks.

He noted that rising gold prices positively impact the profitability of mines and producers, while consumers ultimately bear the price increases.

Regarding consumer behavior amid higher gold prices, Al-Othaim explained that the market is split between consumers and investors, stressing that investment demand for gold has surged due to global political shifts and a weaker US dollar. He cited analyst forecasts suggesting gold could reach $10,000 per ounce in the coming period.

The total gold production by mining companies in Saudi Arabia, according to Al-Othaim, has reached around six million ounces, according to the Ministry of Industry and Mineral Resources’ data.

SGR accounts for 25% of this total, having achieved production of 1.5 million ounces in 2025, exceeding its one-million-ounce target. The production target for 2026 remains set at one million ounces, said the chairman.

On the future of the local mining sector, Al-Othaim affirmed that the Kingdom is moving to establish mining as the third pillar of the national economy.

The new Mining Law, which came into effect in 2019, helped improve the investment climate, positioning Saudi Arabia as a global platform for the industry, the top executive underlined.

SGR has applied for a total of 400 licenses, with 40 approved and 20 officially received so far. The company’s business model covers the entire mining value chain through an integrated ecosystem that includes exploration, drone-led aerial surveying, drilling, laboratories, feasibility studies, and mining operations, alongside the refinery itself, he confirmed.

Internationally, the company’s investment arm has secured a 1,200-kilometer concession in Ethiopia, as part of an external expansion strategy to own and operate full technical services abroad within target countries to accelerate investment and improve the quality of end results, Al-Othaim stated.

He concluded by emphasizing the company’s reliance on experienced national cadres, alongside international expertise, highlighting a partnership with Saudi universities to establish three training centers in the Southern, Northern, and Central Provinces to train and qualify Saudi competencies for sector-specific roles.