30 July 2004
Middle East Economic Digest
© 2004, Emap Communications. All rights reserved

Saudi Arabian Mining Company (Maaden) has shortlisted three banks for the mandate to advise on its planned privatisation. Bids from Barclays Capital, JP Morgan Chase & Company and HSBC are under evaluation, with the successful bidder expected to be announced by the end of August.

Maaden plans to move all its precious and base metal activities into a single unit by the end of the year in preparation for the start of the privatisation process on 1 January 2005. The company's initial public offering is scheduled for the second half of 2005 (MEED 21:5:04).

In addition to ongoing gold mining operations at Al-Hajar and Bulghah, Maaden has extended the lifespan of its Mahd ad-Dahab mine until the end of 2005 and is due to begin operations at Al-Ammar in 2006 and Al-Duwayah the following year. Studies are also under way into the viability of its operations at Al-Suq and Shabah, but those at Hamdah have been abandoned (MEED 2:1:04).

Maaden is planning a 1,500-MW power plant and desalination facility to service its planned aluminium and alumina facilities at Jubail. The company also has a 20 per cent stake in the $1,500 million project for a minerals railway linking the Al-Jalamid and

Al-Zabirah mining projects in the north to the Gulf coast (MEED 9:4:04; 2:4:04).