Saudi state mining company Maaden has announced it will raise its gold production and float 50 per cent of its shares.

‘The company intends to raise annual production to 300,000 ounces from the beginning of 2007 by developing new mines which will be on line at the end of this year and early next year,” Reuters quoted a company statement as saying. It estimated current annual production at 240,000 ounces.
The firm said its current estimated gold reserves were six million ounces, including two million proven, and it hoped to raise that figure to 10 million ounces by 2010.
The announcement that Riyadh would float 50 per cent of Maaden was made in a cabinet statement. The offering will be made at the end of this year. A state pension fund and a social insurance body will each have the option of acquiring 5 per cent of the company in the sale, the cabinet said, without giving more details. This would leave 40 per cent for the public offering.
The statement also said Maaden’s capital would rise to SR8 billion ($2.14 billion), but did not give a comparative figure.
Maaden has embarked on ambitious development projects that include exploiting phosphate reserves and mining bauxite.