The Saudi Arabian Mining Company, Ma’aden, signed a contract in mid-January 2012 for construction of a 430-km pipeline to carry treated waste water to planned new gold mines.

The SR464 million (about $124 million) contract with Metal Services Co. for Trading and Contracting includes engineering, procurement, and construction services for the construction of a main pipeline from Taif to Ad Duwayhi and four other new potential mines. The 18-in.-diameter pipeline will have two pumping stations, mine-site storage facilities, and extensive communications and security systems.

The pipeline will carry treated waste water from Taif NWC Sewage Treatment Plant to future mining operations at Ad Duwayhi, Mansourra, Massarra, As Suq, and Ar Rjum in the Central Arabian gold region. The region has estimated, JORC-compliant resources of 9 million oz of gold, at grades ranging from 1.34 to 2.43 g/mt.

“The construction of this pipeline to an area with such significant resources is an essential step in Ma’aden’s ambition to expand our gold production to 400,000 oz/y in 2015, and the use of treated waste water is proof of Ma’aden’s commitment to minimizing impacts on the environment,” said Ma’aden President and CEO Khalid Al Mudaifer.