Gold discovered in Saudi Arabia

Saudi Arabia announced on Thursday the discovery of large potential gold resources along a 100km stretch south of its existing Mansourah Massarah gold mine in Al Khurmah governorate in the Makkah region, reports Saudi Gazette.

Saudi Arabian Mining Company (Maaden) said that it had discovered multiple gold deposits, indicating the potential to expand gold mining in the area. The mining giant said in a statement that this is the first discovery under the company’s extensive exploration program launched in 2022 and it aims to build a metal production line.

Encouraging drill results from multiple sites on Uruq South, along a 100km stretch south of Mansourah Massarah, have uncovered similar geological characteristics and chemistry to the Mansourah Massarah deposit.

Samples taken indicated the presence of high grade gold deposits of 10.4 grams per ton (g/t) gold and 20.6 g/t gold in two random drilling sites 400 meters from and under Mansourah Massarah, meaning a high density of gold was found in the ore tested from those locations. In light of these results, Maaden planned an aggressive escalation of planned drilling activities in 2024 around Mansourah Massarah.

Maaden has continued to expand its exploration footprint in the Jabal al-Ghadara and Bir al-Tawila prospects, 25 km north of Mansourah Massarah, where the company is transferring inferred resources amounting to 1.5 million ounces for measurement.

In combination, these positive drilling results have identified a potential 125 km strike with significant potential to become a major world-class gold belt in Saudi Arabia.

The near-mine drilling results around Mansourah Massarah indicate that the resource is open both at depth and along the strike, offering significant potential to expand resources at the mine and, potentially, extend the mine life with underground development. Mansourah Massarah had stated gold resources of almost seven million ounces at year-end 2023 and a nameplate production capacity of 250,000 ounces a year.

Robert Wilt, CEO of Maaden, said that these discoveries have the potential to be the center of the world’s next gold rush and are a strong part of our growth strategy.

“These discoveries are a significant demonstration of the untapped potential of mineral resources in Saudi Arabia, supporting the diversification of the country in line with Vision 2030 and establishing mining as the third pillar of the Saudi economy,” he pointed out.

Maaden is 67 percent owned by the Public Investment Fund (PIF), the Kingdom’s sovereign wealth fund, and the largest miner in the Gulf. In January 2023, it announced Manara Minerals, a joint venture with PIF, to invest in mining assets abroad.

It is noteworthy that Mansourah Massarah is the newest, the largest, and the most technologically advanced gold mine in Saudi Arabia. It produced 11,982.84 ounce of gold in 2022.

The mine consists of the Mansourah Massarah resources, which are being developed as conventional open-pit mines. The plant employs Carbon-In-Leach and Pressure Oxidation Processes and autoclave technologies for ore gold production. This mine is equipped with cutting-edge mining, processing, and environmental sustainability technologies.

US allies reluctant to join Red Sea task force

The response to the mantra of US President Joe Biden regarding formation of response force to Yemen's Houthi attacks on ships passing through Red Sea is disappointing. It seems many allies don't want to be associated with it, publicly, or at all.

Two of America's European allies who were listed as contributors to Operation Prosperity Guardian - Italy and Spain - issued statements appearing to distance themselves from the maritime force.

The Pentagon says the force is a defensive coalition of more than 20 nations to ensure billions of dollars' worth of commerce can flow freely through a vital shipping chokepoint in Red Sea waters off Yemen.

Nearly half of those countries have so far not come forward to acknowledge their contributions or allowed the US to do so. Those contributions can range from dispatching warships to merely sending a staff officer.

The reluctance of some US allies to link themselves to the effort partly reflects the fissures created by the conflict in Gaza, which has seen Biden maintain firm support for Israel even as international criticism rises over its offensive, which Gaza's health ministry says has killed more than 21,000 Palestinians.

"European governments are very worried that part of their potential electorate will turn against them," said David Hernandez, a professor of international relations at the Complutense University of Madrid, noting that the European public is increasingly critical of Israel and wary of being drawn into a conflict.

Reportedly, Houthis have been alleged for attacking or seizing a dozen ships with missiles and drones since November 19.

The navies of the United States, Britain and France have each shot down Houthi-launched drones or missiles.

The US believes escalating Houthi attacks call for an international response separate from the conflict raging in Gaza.

However, this kind of propaganda is being highlighted in US sponsored/ supported media. It may be recalled that Hothis has announced to target Israeli ships of vessels carrying to and from Israel.

Denmark's giant container firm Maersk said on Saturday it would resume shipping operations in the Red Sea and the Gulf of Aden. But Germany's Hapag Lloyd said on Wednesday it still believes the Red Sea is too dangerous and will continue to send ships around the Cape of Good Hope.

While the US says 20 countries have signed up for its maritime task force, it has announced the names of only 12.

Although Britain, Greece and others have publicly embraced the US operation, several mentioned in the US announcement were quick to say they are not directly involved.

Italy's defense ministry said that it would send a ship to the Red Sea following requests from Italian ship owners and not as part of the US operation.

France said it supports efforts to secure freedom of navigation in the Red Sea but that its ships would remain under French command.

Spain has said it will not join Operation Prosperity Guardian and opposes using an existing EU anti-piracy mission, Atalanta, to protect Red Sea shipping.

But on Wednesday, Prime Minister Pedro Sanchez said he was willing to consider the creation of a different mission to tackle the problem.

Saudi Arabia and United Arab Emirates earlier proclaimed no interest in the venture.

There is also the risk that participating countries become subject to Houthi retaliation. The person familiar with the US administration's thinking says that it is this risk - rather disagreements over Gaza - driving some countries to steer clear of the effort.

That appears to be the case for India, which is unlikely to join the US operation, according to a senior Indian military official. An Indian government official said the government worries that aligning itself with the US could make it more of a target.

In reality, many European and Gulf countries already participate in one of several US-led military groups in the Middle East, including the 39-nation Combined Maritime Forces (CMF).

The EU's Atalanta operation already cooperates in a reciprocal relationship with CMF, according to a spokesperson for the group.

That means that some countries not formally joining the Red Sea maritime task force could still coordinate patrols with the US Navy.

Maersk schedules vessels through Suez Canal

According to Reuters, Denmark's Maersk has scheduled several dozen container vessels to travel via the Suez Canal and the Red Sea in the coming days and weeks, it said on Wednesday, in a further sign that global shipping firms are returning to the route.

The world's top shipping companies, including container giants Maersk and Hapag-Lloyd, announced to stop using Red Sea routes after Yemen's Houthi militant group began targeting vessels earlier this month.

Maersk's share price fell 5% by 1330 GMT on Wednesday, partly reversing last week's gains, as a return to the shorter routes through the Suez Canal from voyages around Africa might prompt a freight rates correction.

Other shipping stocks also fell, including Hapag-Lloyd which dropped 6%, oil tanker group Frontline which was down 5.3% and car shipping service Hoegh Autoliners which was 3% lower.

Maersk said on December 24 it was preparing a return to the Red Sea for both eastbound and westbound journeys, citing the deployment of a US-led military operation to protect vessels against Houthi attacks, but provided few details.

The schedule remains subject to change based on specific contingency plans that may be formed over the coming days, the company said on Wednesday.

France's CMA CGM on Tuesday said it was increasing the number of vessels travelling through the Suez Canal.

Among the vessels listed in a Maersk advisory to clients on Wednesday was the Maren Maersk, which departed Tangiers on December 24, 2023 and would continue via Suez Canal with an estimated time of arrival in Singapore on January 14, 2024.

But many of its vessels are still scheduled to take the journey around Africa, the advisory showed.

Maersk has since December 19 rerouted ships around Africa via the Cape of Good Hope to avoid attacks, charging customers extra fees and adding weeks to the time it takes to transport goods from Asia to Europe and to the east coast of North America.

It announced on December 22 that it would add charges of US$700 for a standard 20-foot container travelling from China to Northern Europe, consisting of a US$200 transit disruption surcharge and a US$500 peak season surcharge.

The transit disruption charge was imposed last week with immediate effect while the peak season addition is valid from January 01, 2024. It was not immediately clear how the decision to restart some Red Sea shipments would affect the surcharges.

The company declined to comment further when asked about its vessel schedules.

"At the moment, we cannot say anything more than what has been shared," a Maersk spokesperson said in a statement.

German rival Hapag-Lloyd still considers the situation too dangerous to pass through the Suez Canal, a spokesperson for the company said on Wednesday, adding that it would continue to reroute its vessels via the Cape of Good Hope.

 

 

Moving Palestinians from Gaza to Sinai

According to a write up published in The Jerusalem Post, moving Palestinians to the Sinai Peninsula has been termed the ideal solution to resolve Gaza crisis.

The writer believes, the Sinai Peninsula comprises one of the most suitable places on Earth to provide the people of Gaza with hope and a peaceful future.

The 365 km² Gaza Strip has remained a flash point in Israel-Egypt relations since its conquest by the Egyptian Army in 1948 as part of Egypt’s failed attempt to annihilate the newly-born State of Israel.

Egypt invaded Israel along two main axes, reaching the outskirts of Jerusalem and only 20 km. short of Tel Aviv, but the Israel Defense Forces pushed off this offensive. These battles generated a wave of refugees that found haven in the Gaza Strip, which remained under Egyptian military control until 1967.

Since 1948, and up until the current partial release of some of the Israeli babies, children, and women taken hostage by Hamas terrorists, the Egyptians have been significantly involved in the politics and economy of the Gaza Strip.

The Egyptians locked the residents of Gaza and the refugees of the 1948 War in the Gaza Strip, and, with the backing of the United Nations, still deny them the right to rebuild their lives in all Arab countries, including in the adjacent Sinai Peninsula of Egypt. This harsh policy was one of the major and long-term catalysts for the intensifying human stagnation of now circa 1.8 million inhabitants within the Strip.

According to the writer, beyond the abduction, mutilation, burning, rape, and murder of 1,200 Israelis and other nationals, the Hamas terrorist invasion of Israel on October 07 destroyed many Israeli agricultural villages. This barbarian murder-fest led the IDF to conquer the northern Gaza Strip and the Hamas-infested Gaza metropolis as part of Israel’s goal to destroy Hamas terror capabilities. As civilians were ordered to move south, the southern Gaza Strip became a haven for most of Gaza’s residents.

The battles in the northern Strip generated significant damage and destruction of buildings utilized by Hamas. Damage to the immense terror-tunnel system further destabilized the metropolis’s substrate. Major portions of the metropolis are considerably incapacitated and cannot be simply fixed. Rather, the damaged and destroyed structures must be completely torn down. The tunneled – and consequently exploded and bulldozed – soil must undergo extensive environmental and engineering rehabilitation.

In other words, the metropolis has to be fully evacuated, redesigned, monitored, and only then rebuilt to provide habitable and economic conducive conditions. Such an effort requires unique expertise and immense funding and will take considerable time that cannot be calculated.

Therefore, the war is anticipated to end with a unique humanitarian challenge of how to construct a better future for the people of Gaza.

Since Israel’s unconditional turnover of the Gaza Strip to the Palestinian Authority in 2005, Gazans have completely failed to generate a productive Palestinian-administered entity, despite generous economic support, mainly from America, Europe, Qatar, and the UN.

This may be associated with the coupled effect of an intrinsic hatred-focused, fanatic, anti-Israel Islamic culture, and links with Iran, along with limited geographical conditions, poor natural and human resources, and a high population density.

This situation raises serious doubts that any type of future self-sustainable efforts will yield a stable and free socioeconomic culture and promising future in the Strip. A creative solution is needed ASAP.

The adjoining Sinai Peninsula, in essence, is the exact opposite of the Gaza Strip, comprising one of the most suitable places on Earth to provide the people of Gaza with hope and a peaceful future.

Covering 60,000 km² (165 times larger than the Strip), its population is barely around one-third of Gaza’s, making it one of the emptiest places in the Mediterranean region.

Although under Egyptian governance, it is an integral geographic-geological continuation of Israel and the Gaza Strip, with which it shares a 200 km. and 14 km. long border, respectively.

Therefore, the geographic setting of the Mediterranean coast of northern Sinai is also a physical continuation of the Gaza Strip with ample, shallow groundwater in the northeast.

Due to the intensive smuggling of arms to Hamas via Sinai in the last few years, Egypt fully destroyed the residential infrastructure bordering the Gaza Strip, and expelled the local population.

In northwestern Sinai, Egypt has invested immensely in building for agriculture, including freshwater canals.

Furthermore, Egypt has surprisingly wired Sinai with excellent infrastructure, overshooting its civilian and industrial needs. These include an array of paved roads and highways connected by tunnels beneath the Suez Canal to mainland Egypt.

The facts demonstrate that the northern Sinai Peninsula is an ideal location to develop a spacious resettlement for the people of Gaza. Its open areas, along with the existing infrastructure, can easily host large-scale development projects that, if led by the Chinese and supported by local labor, for example, can easily mature in just one to two years.

Firm American and international guidance lined with financial and operative support can surely pave the way to this creative and prosperous solution and jointly help Egypt’s dire demographic and economic situation that is challenging its political authority.

Israel will also be cooperative in sharing its hi-tech-oriented agricultural capabilities with Egypt as it did following the Peace Treaty in the early 1980s.

If Egypt bravely chooses to change its rigid, old-fashioned policy of keeping Palestinian Gazans in constant distress and consents to such an endeavor, its geopolitical gains will be threefold: It will be hailed by the international community as the savior of the dire plight of Gazans; it will strengthen its status as a leader of the Arab world; and it will finally fulfill its 30+-year-old plan to settle the Sinai and strengthen its control of this zone.

However, history has taught us that Gazans, despite their complaints about their humanitarian situation, may object towards genuine rehabilitation programs. This stubbornness substantially relies on their desire to destroy Israel, which repeatedly comes at their own expense.

The ongoing obliteration of Hamas, which terrorizes Palestinian Authority officials and many Gaza residents, may pave the way to the emergence of the proposed Sinai solution, if presented in a wise and discrete manner that conforms to the Middle East mentality.

 

 

Raisi visit to Turkey to focus on Gaza

According to Reuters, Iranian President Ebrahim Raisi will visit Ankara on January 04, 2024 to meet his Turkish counterpart Tayyip Erdogan for talks likely to focus on the situation in Gaza and Syria as well as bilateral ties.

A visit by Raisi in late November was postponed due to the conflicting schedules of the two regional powers. At the time, Turkey's foreign minister was in New York as part of a contact group of Muslim countries on Gaza.

Turkey, which supports a two-state solution to the decades-old Israeli-Palestinian conflict, has harshly criticized Israel for its attacks on Gaza, called for an immediate ceasefire, and said Israeli leaders should be tried in international courts for war crimes.

While it has ramped up its rhetoric against Israel since it launched its air and ground assault on Gaza in retaliation for Palestinian militant group Hamas' October 07 attack, Turkey has also maintained commercial ties with Israel, prompting criticism from some opposition parties and Iran.

Unlike its Western allies and some Arab nations, NATO member Turkey does not consider Hamas a terrorist group.

Its neighbor, Iran stands at the head of what it calls the Axis of Resistance, a loose coalition that includes Hamas as well as armed Shi'ite Muslim groups around the region that have militarily confronted Israel and its Western allies. It has voiced support for Hamas and warned of wider consequences if the fighting in Gaza continues.

Turkey and Iran have usually had complicated ties, standing at loggerheads on a host of issues, primarily the Syrian civil war. Ankara politically and militarily backs rebels looking to oust President Bashar al-Assad, while Tehran supports his government.

While several rounds of talks have been held between Syrian, Turkish, Iranian and Russian representatives to find a political solution to the war, Ankara has also moved to improve ties with Assad as part of a regional diplomatic push launched in 2020.

 

 

Shrinking number of OPEC members

Lately, Angola has relinquished its OPEC membership. Earlier Qatar, Indonesia had left the organization. These departures are not likely to have any considerable impact on total world market supply.

Generally, it seems OPEC is facing three challenges these days. The first one is the withdrawal of members. Over the past years, OPEC’s efforts to persuade other oil-producing countries to join it have been unsuccessful.

During the current year, OPEC repeatedly invited Guyana to become a member but the South American country rejected the invitation, apparently based on the assumption that it wants to maximize oil production and profits during an era in which oil demand could be in decline over the coming years.

Not only OPEC has not been able to attract new members it also faces new potential quits. After Qatar decided to exit the organization, at least for the past couple of years, UAE has been the largest threat to the unity of the organization.

The disarray between UAE and OPEC led by Saudi Arabia reached its climax two years ago when the country insisted on a higher baseline to its quota to allow for more domestic production.

If the UAE decides to exit the organization it could weaken the influence of the organization as far as it concerns setting oil prices because the Emirates is OPEC’s third-largest oil producer.

The second challenge of OPEC is that since more than a decade ago, three of its main members have played no role in making decisions in the ministerial meetings of the organization.

These three countries' position in OPEC, as the hawks of the organization, has declined considerably mainly due to the US sanctions.

Two of these countries are non-Arab founding members of the organization: Iran and Venezuela. And the third one is Libya as the most serious advocate of higher prices strategy among the African members of OPEC.

Libya's policies at OPEC were close to Iran and Venezuela which more and less were close to each other at OPEC against Saudi Arabia which mainly defended its market share.

When the three countries' influence eroded at OPEC either through the US sanctions or via the toppling of Qadhafi during the Arab Spring unrest, Riyadh probably felt that these developments have paved the way for its unchallenged dominance in OPEC’s decision-making meetings.

Their absence as members who are being excluded from the quota and limiting oil production mechanism may have weakened Saudi Arabia's stance in setting desired oil prices which has to cut oil production voluntarily in the hope of boosting oil prices.    

The read challenge OPEC faces is not from within but from outside. This challenge culminated at the COP28 in UAE when a great number of participating countries asked for fossil fuel phase-out.

Oil once lubricated the wheels of industrialized countries' economies and was the world's economic growth engine. Now it is considered, mostly by industrialized countries, as something redundant that humans should get rid of as soon as possible to save the planet against global warming, and OPEC’s reasoning that humans should get rid of emissions, not fossil fuels, apparently remains unheard.

 Even though the term phase out was eliminated from the final COP28 communiqué, 198 countries reached an agreement that emphasizes transitioning away from fossil fuels, and United Nations (UN) Secretary-General Antonio Guterres said, “To those who opposed a clear reference to phase out of fossil fuels during the COP28: Whether you like it or not, fossil fuel phase-out is inevitable.”

Now OPEC through cooperation with ten non-OPEC oil producers called OPEC Plus tries to maintain its influence in the oil market but without that, it faces internal and external challenges that threaten the power once it enjoyed in the world oil market. 

 

Israeli strike in Syria kills Iranian commander

A senior Iranian commander was killed in a suspected Israeli strike in Syria, says Iranian media.

Seyyed Razi Mousavi was an experienced military adviser to the Islamic Revolutionary Guards Corps, the semi-official Tasnim news agency said.

It says he was killed in an air strike on the Sayyida Zeinab area south-east of Damascus.

Israel has carried out military strikes in Syria for years, against what it says are Iran-linked targets.

The strikes have increased in frequency over the past months following Hamas' attack on October 07.

Iranian forces have been present in Syria since the early stages of the Syrian civil war, where they helped support the regime of President Bashar al-Assad against widespread rebellion to his rule.

Mousavi is said to have been an aide to IRGC commander Qassem Soleimani, who was killed by the United States in 2020.

He was one of most senior IRGC operatives in Syria, according to Tasnim, and helped co-ordinate the relationship between Tehran and Damascus.

Iran's Revolutionary Guards said that Israel would pay for this crime.

There has been no immediate comment from Israel's military, which rarely discusses cross-border strikes.

Earlier this month, Iran accused Israel of killing two members of the Revolutionary Guards in Syria.