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Saudi Arabia’s Golden Discovery: Mining’s Rising Star
1. The Breakthrough
In late 2023 the country of Saudi Arabia announced a significant new gold-mining discovery through its flagship miner Ma’aden. The find is south of the existing Mansourah Massarah mine in the Makkah region, and it spans a roughly 100-kilometre corridor of mineral potential.
Highlights include:
• Drill samples grading as high as 10.4 g/t and 20.6 g/t gold at two sites near the mine.
• At end of 2023 the Mansourah Massarah mine’s gold resources were estimated at almost 7 million ounces, with a nameplate production capacity of ~250,000 ounces/year.
• The discovery is seen as potentially building a “world-class gold belt” in Saudi Arabia.
2. Why It Matters: Economic & Strategic Impacts
Diversification away from oil
Saudi Arabia has for decades relied heavily on hydrocarbon exports. Under the government’s Vision 2030 agenda they are seeking to expand mining and other non-oil sectors. The gold discovery fits squarely into that strategy.
Huge upside in mineral wealth
According to governmental data the country’s gold output in 2022 was ~11,386 kg (down from ~12,413 kg in 2021) and its proven/probable reserves at the end of 2022 were ~540,000 kg of gold grading 1.57 g/t from 11 sites.
This shows the scale is still modest compared to global giants—but what is exciting is the potential growth.
Regional and global mining competition
With high grade intercepts (10–20+ g/t) the new discoveries may rival or at least challenge operations elsewhere. Some commentary suggests this could place Saudi Arabia among “the world’s next gold rush” locales.
3. Current State of Production & Reserves
• In 2022: production was 11,386 kg (≈ 365,800 ounces) of gold.
• Several gold mines exist: e.g., the Mahd adh Dhahab (“Cradle of Gold”) in the Madinah region is historic.
• Reserves: At end-2022 the country had ~540,000 kg (≈17.35 million troy ounces) of gold reserves in the sites surveyed.
• The newly discovered corridor south of Mansourah Massarah suggests the resource base could increase significantly.
4. Challenges & Considerations
• Mining grade vs scale: While high grades (10+ g/t) are promising, extraction costs, infrastructure, water, and power requirements in Saudi’s geology will matter.
• Resource conversion: “Resources” are not the same as “profitable reserves”. The process of turning exploration success into mining output is long and capital-intensive.
• Environmental & social factors: Mining in a desert climate, with constraints on water and potential environmental impacts, will require careful management.
• Global competition: Other countries with established gold mining industries still dominate; Saudi is a newcomer in this heavy-cap sector.
• Dependency risk: While gold helps diversification, mining also brings risks (commodity price swings, operational risk). Saudi still needs to manage its broader economic transition carefully.
5. Geology & Location Insights
The geological setting is the Arabian Shield—a region with ancient rocks favourable to gold, copper, and other metals. The Mansourah Massarah area lies in the western part of Saudi Arabia in the Makkah region, which adds logistical advantages for investment relative to remote mines. The fact that drilling intercepts are near/under existing mine areas suggests the “strike” (length of deposit) may be extendable, and depth-potential remains.
6. Outlook & What to Watch
• Drilling results in 2024-25: As Ma’aden escalates drilling, more data will clarify how much of the resource is economically mineable.
• Production ramp-up: Whether the nameplate capacity of 250,000 ounces/year (for Mansourah Massarah) can be reached or exceeded depends on mine infrastructure, processing, and permitting.
• Foreign investment and partnerships: As Saudi opens up mining to foreign firms, we may see joint ventures, technology transfer, and international players entering.
• Impact on Saudi economy: If mining becomes a major “third pillar” of the economy (after oil and petrochemicals), it could shift employment, exports, and domestic industrialisation patterns.
• Global gold market context: Even if Saudi boosts production significantly, global gold production is large and many countries compete; Saudi must find competitive advantages (grade, cost, stability, regulation) to succeed.
7. Conclusion
The discovery of high-grade gold deposits in Saudi Arabia marks a milestone for the kingdom’s ambitions to diversify beyond oil. While the numbers are still modest compared to the world’s largest gold producers, the geological potential, the favourable grades, and the state backing make this a story worth following. With the right execution—drilling, infrastructure, regulation, environmental management—Saudi could emerge as a noteworthy gold-mining nation over the next decade.
Attached is a news article regarding Saudi Arabia finding gold
https://www.arabnews.com/node/2586531/amp
Article written and configured by Christopher Stanley
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