2023-12-31 11:06:52
Saudi Arabia made a resounding announcement on Thursday, December 29: the country has discovered a gigantic gold deposit in the south of its territory, which might shake up the world market for this precious metal.
It was in the region of Mansoura and Massara, regarding 750 kilometers southwest of the capital Riyadh, that the treasure was unearthed. According to the Saudi mining company Ma’aden, which has carried out explorations since 2022, this is a 100 kilometer long gold zone, which contains gold reserves comparable to those of mines already operating in the region. .
Drilling carried out at a distance of 400 meters and at depth revealed exceptional gold contents, up to 20 grams per tonne of rock. For comparison, the global average is 1.5 grams per tonne.
This discovery represents a unique opportunity for Saudi Arabia, which aims to develop its mining sector and diversify its economy, which is too dependent on oil. The country plans to build a mineral production line in the region, which might generate thousands of jobs and substantial income.
Saudi Arabia is not a new country in gold mining. The kingdom already has five operating gold mines, which produced 3.9 tonnes of gold in 2020. But with this new discovery, the country might become a major player in the global gold market, dominated by China, which produced 383.2 tonnes of gold in 2020.
Gold is a highly coveted metal because it is considered a safe haven in times of crisis. Its global demand reached 3,759.6 tonnes in 2020, up 4% from 2019. Its price also increased, reaching a record $2,067 per ounce in August 2020.
Saudi Arabia might therefore take advantage of this favorable situation to increase its production and exports of gold, and thus strengthen its position on the international scene. But the country will also face challenges, such as environmental protection, worker safety and competition from other producing countries.
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