Maaden unit awards $606 mln gold project contract to Outotec-L&T consortium

Saudi Arabian Mining Co.’s (Maaden) wholly-owned unit, Maaden Gold & Base Metals Co., awarded a SAR 2.27 billion ($606 million)  contract to Outotec and Larsen & Toubro consortium to develop the Mansourah & Massarah gold project.

Under the contract, which will extend for 36 months, as of May 15, 2019, Outotec will undertake the procurement, construction, and turn-key phases, and will help with training and maintenance activities. 

Construction works will start as of the contract signing date, and the pilot operations are expected to begin in Q2 2022. 

The related financial impact is estimated to appear in Q2 2022, the company said in a bourse statement. 

With a total cost of SAR 3.3 billion ($880 million), the Mansourah and Massarah project is expected to produce an average of 250,000 ounces of gold per year.