Saudi Arabian Mining Co wants to more than double gold output within five years.
Maaden, as the State-backed company is known, plans to boost gold output from about 415 000 oz this year to one-million by 2025, CEO Darren Davis said in an interview. That would catapult the oil-rich kingdom from a marginal gold producer to one of the world’s top-20 suppliers.
Gold demand is rising as US-China trade tensions and fear of a recession persist. With declining prices of some commodities including aluminum, which generated 40% of Maaden’s revenue last year, the company may be counting on the precious metal’s allure as a safe-haven investment to soften the hit.
“Global tensions have an impact on gold -- in a positive way,” Davis said.
Saudi Arabia plans to spend more than $7.4-billion exploring for metals and minerals by 2035, part of a $426-billion infrastructure spending plan that in part seeks to exploit what could be $1.3-trillion in resources.
Maaden will boost its exploration budget to 250-million Saudi riyals ($66.7-million) this year, about triple its average annual spending over the past decade, Davis said. The company will focus on gold, copper and zinc.