The Saudi Arabian Mining Co. (Maa'den) said Tuesday it shifted to a net profit in the third quarter of the year compared to the same period in 2010 on higher world gold prices and an increase in sales. Net profits climbed to SR27.4 million ($7.3 million) compared to a net loss of SR200,000 in the corresponding three-month period in 2010, Ma'aden said in a statement on the Saudi stock exchange website. The state-run firm, which was set up in 1997, has been expanding its operations to also include phosphate and bauxite mining. Gold prices have been climbing sharply over the past year, and closed up $35 per ounce, or at $1,669.60 an ounce in New York Monday. The average gold price was $1,703 an ounce in the third quarter compared to $1,227 an ounce in the year-earlier period. Gold traded at $1,671 an ounce at 9.34 A.M. in Riyadh. Ma'aden, whose main focus is gold mining, is expanding by adding three new business lines, including aluminum and phosphate, to tap rising demand for chemicals used in agriculture and the lightweight metal to make beverage cans and aircraft. A joint venture between Ma'aden and New York-based Alcoa Inc. started construction at an alumina refinery in Ras Al-Khair, Alcoa said on Aug. 10.
