Middle East to see gold output triple over 2006

Gold production in the Middle East will more than triple in 2009 from 2006, according to an estimate by the US Geological Survey (USGS). The manifold gain in output, though still not as attractive as the region's record in hydrocarbons, is being led by Saudi Arabia. The region produced 7.8 tonnes of gold in 2006 and expects to enhance this figure to 22 tonnes in 2009. Gold production is then expected to marginally increase to 25 tonnes in 2011, said USGS forecasts. Although Saudi Arabia's gold mines have been discussed for centuries, mining so far has been meagre, as the Kingdom primarily reveled on its hydrocarbon sales. The government recently turned its attention to mining of minerals as it tried creating more job opportunities for its growing populace. The oil rich kingdom produced 5.7 tonnes of gold in 2008, and is estimated to double it to 11 tonnes this year, further ameliorating it to 12 tonnes the next year. Other countries contributing to Middle East's rising production include Algeria, Mauritania, Morocco, Oman and Iran. While Morocco produced 0.58 tonnes of gold in 2005, it is expected to produce 2.7 tonnes in 2009. Mauritania, which stopped production in 2005, is estimated to produce 5.3 tonnes this year. Algeria, which began gold production in 2005, is expected to produce 1.5 tonnes this year. Iran, the hydrocarbon-rich nation that produced 0.2 tonnes of gold in 2006, is expected to produce two tonnes this year, thus registering a 10-fold increase in three years. Other than Saudi Arabia, Oman is the only Gulf country with substantial gold reserves. Although its production stood at 5.51 tonnes in 2000, it has not been producing gold ever since. A proper infrastructure could strengthen the Middle East's gold mining sector, said analysts. "The Saudis could enhance their gold production as they focused on infrastructure for the past few years. Other countries with gold reserves in the region could do the same," said Anoop PS, Assistant Vice- President at Dubai-based JRG International Brokerage DMCC. Anoop and another Dubai-based precious metals analyst said they do not expect the additional gold production coming online this year to impact prevailing market sentiments. "This production will be factored into the region's consumption," he added. Ma'aden, the Saudi Arabian mining company, produced 127,744 ounces of gold worth SR420 million (Dh412m, $112m) last year. Several projects are located in what Saudis call the "Cradle of Gold" region, an ore-rich area in the west where the precious metal has been known to exist for more than 3,000 years. Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here .