Riyadh – Mubasher: Maaden Gold and Base Metals Company, wholly owned by the Saudi Arabian Mining Company (Maaden), has signed a SAR 2.27 billion ($606 million) contract with Outotec and Larsen &Toubro Consortium.

The 36-month contract will handle engineering, procurement, and construction of the Mansourah & Massarah Gold Project, according to the company’s statement to the Saudi Stock Exchange (Tadawul) on Sunday.

The lump-sum turnkey contract includes complete engineering, procurement, construction, pre-commission, commissioning, start-up assistance and training services for the project.

Mansourah Massarah Project will produce an average of 250,000 ounces of gold per year throughout the life of mine, which is 12 years.

Maaden Gold noted that construction work is planned to start from the date of signing the contract.

Production is expected to start in the second quarter of 2022.

Moreover, the financial impact of the deal is estimated to begin in Q2-2022, whereas the ramp-up will be thereafter.