Saudi Arabia to Explore Copper Reserves to Meet Local Demand

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Researched by Industrial Info Resources (Sugar Land, Texas)--Saudi Arabia relies on imports from countries such as South Africa, Russia and the U.S. to fulfill its copper needs. The country consumes 500,000 tons of copper yearly, with a total cost of about $4 billion.

According to a statement issued by Saudi Arabia's Ministry of Petroleum and Mineral Wealth, copper is found in association with zinc along the western part of the country's Central region. It is also found in the region of Umm Syide, which is northeast of Jeddah and has reserves estimated at 29 million tons. It has been proven that it is technically feasible to produce concentrations of 29% copper with an annual production of between 79,000 and 120,000 tons.

In 2009, Bariq Mining Limited (Jeddah, Saudi Arabia) announced the commencement of the Jabal Sayid mining project and performed the definitive feasibility study for the project. After the study was completed, the exploitation license was granted to Bariq in May 2010.

Bariq has been granted this license on a 50:50 basis with Citadel Resource Group Limited (ASX:CGG) (Sydney, Australia) for the Jabal Sayid copper and gold project. The exploitation license has a 30-year term and includes copper, zinc, gold, silver and other metals.

The Jabal Sayid copper and gold project will be complete at the end of this year and will have a production capacity of approximately 57,000 tons of copper concentrate per year. The average minehead ore grade through the concentrator will be 2.3% copper and approximately 0.3 grams of gold per ton.

SNC-Lavalin Group Incorporated (TSX:SNC) (Montreal, Quebec) has been awarded the engineering, procurement and construction management (EPCM) contract for the Jabal Sayid copper concentrator project, which has an estimated pre-production capital cost of $300 million.

Copper ore is also found in the Al-Masanae region near Riyadh in reserves estimated at 7 million tons. Reserves of about 4 million tons are also located west of Riyadh.

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