What's Happening?
Saudi Arabia's Maaden has awarded an Engineering, Procurement and Construction Management (EPCM) contract to Bechtel for the development of the Ar Rjum gold mine. This decision follows Maaden's Final Investment
Decision (FID) in August 2025, aiming to double gold production by 2030. The contract, valued at $04.3 million, involves the construction of mine and processing facilities in the Makkah Region, approximately 200 km northeast of Ta’if. The Ar Rjum project is expected to produce 3.6 million ounces of gold over a 12-year period, featuring an open-pit operation and a state-of-the-art processing facility with a throughput capacity of 8 million tons per year.
Why It's Important?
The awarding of the EPCM contract to Bechtel marks a significant milestone in Maaden's strategy to expand its gold production capabilities. This project is crucial for Saudi Arabia's mining sector, which is rapidly growing and aims to leverage the Kingdom's mineral resources. The partnership with Bechtel, a global leader in engineering and project management, is expected to enhance local economic value, create opportunities for local suppliers, and support community development. The Ar Rjum project is poised to play a pivotal role in Saudi Arabia's ambition to become a leading player in the global gold market.
What's Next?
As the project progresses, Bechtel will utilize its extensive global supply chain and local partnerships to ensure the successful delivery of the Ar Rjum gold mine. The development is anticipated to fuel further growth in Saudi Arabia's mining sector, potentially attracting more international investment and expertise. Maaden's focus on expanding its gold production aligns with broader national goals to diversify the economy and reduce reliance on oil revenues.
Beyond the Headlines
The collaboration between Maaden and Bechtel underscores the importance of international partnerships in advancing Saudi Arabia's industrial capabilities. The project not only aims to boost gold production but also to foster technological innovation and sustainable practices within the mining industry. This initiative reflects a broader trend of leveraging global expertise to unlock the Kingdom's mineral potential, contributing to long-term economic diversification.
