What's Happening?
Saudi Arabian Mining Company (Maaden) has awarded a $104.3 million Engineering, Procurement, and Construction Management (EPCM) contract to Bechtel for the development of the Ar Rjum gold mine in the Makkah Region. The contract is part of Maaden's strategy
to double gold production by 2030. The project involves constructing an open-pit mine and processing facilities capable of handling eight million tonnes of ore annually. Ar Rjum is expected to produce 3.6 million ounces of gold over a 12-year period.
Why It's Important?
The development of the Ar Rjum gold mine is a significant step in Saudi Arabia's efforts to diversify its economy and reduce reliance on oil revenues. By expanding its mining sector, Saudi Arabia aims to create new economic opportunities and jobs, contributing to the Kingdom's Vision 2030 goals. The partnership with Bechtel, a global leader in engineering and construction, ensures the project benefits from international expertise and strengthens Saudi Arabia's position in the global mining industry.
What's Next?
The EPCM contract with Bechtel is set to last 39 months, during which the construction of the mine and processing facilities will take place. Maaden plans to continue expanding its gold production capabilities, with Ar Rjum playing a key role in achieving its ambitious targets. The project is expected to create economic value, support local suppliers, and contribute to the growth of Saudi Arabia's mining sector.
Beyond the Headlines
The Ar Rjum project reflects Saudi Arabia's strategic shift towards developing its mineral resources as part of a broader economic diversification plan. The collaboration with Bechtel highlights the importance of international partnerships in achieving large-scale infrastructure projects. The success of this project could pave the way for further investments in the mining sector, enhancing Saudi Arabia's global competitiveness.
