Transcript Slide 1
Mining in the Arab World - Ma’aden and the Kingdom of Saudi Arabia Dr. Hany Dabbagh Vice President SBU Precious Metals and Exploration Melbourne, 5th May 2011 Underground at Mahd Ad Dahab Mine, Saudi Arabia The Arab World ARAB WORLD 9 % world land area 5% world population 4% world GDP AUSTRALIA 5 % world land area 0.3% world population 1.3% world GDP North Africa and Arabian Peninsula Arabian-Nubian Shield • Arabian Shield Area: 575,000km² • 1,000 ancient copper and gold mines • Wide variety of mineral systems • 8,000 occurrences, many not subject to systematic exploration • Very low historical exploration spend • Canadian and Australian Shields are of a similar age and nature and host a multitude of economic deposits • Ma’aden is expanding its exploration to cover Precious and Base Metals, Uranium, Iron Ore and REEs Non-Petroleum Minerals and Metals in KSA Source: MODS Database (2010) Political Risk Source: Office National Du Ducroire (April, 2011), Country Risks Summary Table Trade and Investment Opportunities in the Arab World Mining Industry for Australia Exploration & Development Alliances, Joint Ventures, … Mining Services Contract Drilling, Skilled Manpower, O&M, … Engineering and Construction Environmental, Project Management, Engineering Design, EPC, … Education English Language Training, Trade and Technical, Staffing Local Colleges, … Evolution of Ma’aden 1997~1999 2000~2002 2003~2006 2007~2008 Beginning Gold Development Mining Law & Railway Capitalization 2000 Al Hajar Gold Mine commissioned 2004 KSA Mining Investment Law 2007 2009 Phosphate Joint Venture with SABIC Aluminum Joint Venture with ALCOA 1997 Established 2002 Bulgah Gold Mine Opened 2009~2011 Expansion & Growth ECA with SWCC & SEC 2006 North-South Railway approved by Council of Ministers 2008 Completed IPO 50% share public Today Phosphate Project commissioning Aluminium Project under construction 7/16/2015 “A World Class Minerals Enterprise” Gold and Base Metals 5 Gold operating mines 150 K Oz average annual production 1.2 m Oz reserves JORC compliant Over 10 m Oz resources JORC compliant Aluminum Mine: 4 m tonne pa of bauxite Refinery :1.8 m tonne pa alumina Smelter :740 k tonne pa aluminium Rolling mill: 460 k tonne pa Phosphate 3 m tonnes pa of DAP per year 1.5 m tonnes pa phosphoric acid, 4.5 m tonnes pa sulfuric acid 1.1 m tonnes pa ammonia (0.4 is excess am.) Industrial Minerals Magnesite: commissioning mine at Zarghat Magnesite calcination plant in Madinah Industrial Grade Bauxite mine at Az Zabirah Kaolin: mine at Az Zabirah Ma’aden Phosphate Company 2007: Ma’aden and SABIC signed joint venture agreement to form Ma’aden Phosphate company, MPC. 2008: MPC was registered. SABIC have 30% equity share with 70% balance of ownership retained by Ma’aden. The phosphate project is USD5.5 Billion investment. 10 Phosphate Joint Venture and Projects Ma’aden Phosphate 70% 30% Ma’aden Phosphate Company Starting commercial production in 3rd Q ‘11 100% Al Khabra Project Under Feasibility Study Phosphate Resources • Inferred Resources (as per SGS): •Al – Jalamid …. 4,120 MMT • Umm’wual …. 3,570 MMT • Mining Licenses: • Al Jalamid : 49.55 sq KM • Measured Resource : 534 MMT • Al Khabra - Umm Wu’al:38 sq KM • Measured Resource : 236.3 MMT • Exploration License: • Al Jalamid : : 2,480 sq. KM AL Jalamid • Indicated Resource :1 270 MMT • Umm Wu’al: 1,699 sq. KM • Indicated Resource : 450 MMT Aluminum Project Profile The largest and most efficient vertically integrated aluminum complex in the world Bauxite Mine • • • • Al Ba’itha mine 4 M tonnes annually North-South railway to transport bauxite Operational 2014 Refinery • • • • • Located at Ras Az Zawr First Alumina Refinery in GCC Smelter • Designed for expansion • • • Operational 2014 • 1.8 M tonnes annually Co-located with Refinery at Ras Az Zawr 740 KM tonnes annually Designed for expansion Ingots, billets, T-bar and slabs for Rolling Mill Rolling Mill • • • • Operational 2013 • 7/16/2015 13 Co-located with Smelter at Ras Az Zawr 460 K tonnes annually Designed for expansion Can, Auto, Foil & Constructions Applications Operational 2013 Aluminum Project Progress June 2010 - The JV breaks ground Oct. 2010 - The project pours first concrete Feb 2011 – Foundation work 7/16/2015 Industrial Minerals Magnesite • Operating Mine at Zarghat • Commissioning process plant at Madinah • Products include: o Caustic Calcined Magnesia o Dead Burned Magnesia Kaolin and Industrial Grade Bauxite • Mine at Az Zabirah, started 2008 • Bauxite source of high alumina materials for cement industry • Kaolin for ceramics • Potential for expansion into downstream engineered Kaolin products Industrial Minerals Exploration • Developing deposits • Expanding the mineral portfolio Magnesite Processing Plant, Madinah Under-investment in Saudi Arabia and Arab World is not sustainable in the long term Under-explored geology and untapped resource potential Competitive energy supplies Access to modern technology Proximity to markets in Europe, Middle East and Indian sub-continent Modern mining and investment codes