Maaden says output begins at gold mine, delayed at copper mine

Saudi Arabian Mining Co. (Maaden), the Gulf region’s largest miner, said commercial production has begun at the Ad Duwayhi gold mine, which is owned by its subsidiary, Maaden Gold and Base Metals Co.

The Ad Duwayhi mine, where trial production began in October 2015, has an estimated average annual production capacity of 180,000 ounces of gold over the life expectancy of the mine. Production capacity will gradually ramp up to reach 100 percent by the end of this year, the Gulf region’s largest miner said in a statement to Tadawul.

The mine had reserves of 1.9 million ounces of gold as of Dec. 31, 2015, it said.

The financial impact of commercial production will be booked by Ma’aden from Q2-2016 onward.

In a separate statement, Ma’aden said that commercial operations at Jabal Sayid copper mines, which is owned by its affiliate, Maaden Barrick Copper Co., have been delayed from the first quarter 2016.  A new date will be announced by the company when the final mechanical testing is completed.

Maaden Barrick Copper Co. is a joint venture equally owned by Maaden and Canada’s Barrick Gold Corp. The Jabal Sayid mine, which has a capacity of 45,000 to 60,000 tons of copper concentrate, started trial operations last December.