Six of the region’s largest metals and mining companies made the MEED 100 list, reflecting the growth of the sector in recent years.

Saudi Arabian Mining Company (Maaden) ranked highest at 24, up 11 places on its 2011 position. With five gold mines in operation and a 70 per cent stake in a phosphate firm, it has benefited from a rise in prices over the past year.

Gold prices reached a record high of $1,920 a troy ounce in September 2011 after starting the year at $1,400 a troy ounce. The boost came as investors abandoned equities in favour of safe havens in response to the Arab uprisings, the eurozone crisis and the fall in the value of the dollar.

Rock phosphate prices also increased in 2011 from $75 a tonne in 2010 to $117 a tonne, according to US ratings agency Fitch Ratings. Maaden is in the midst of a major investment programme that will see it develop downstream industries for its phosphate and bauxite reserves, as well as expanding its mining operations. Maaden is building an alumina refinery, aluminium smelter and rolling mill at Ras al-Khair, 90 kilometres north of Jubail. The mills will begin operating in 2013 and the refinery will start up in 2014.

The move downstream, coupled with significant growth in mining operations, will in time significantly increase Maaden’s profit base. The firm currently has a market capitalisation of $8.3bn, up from $5.1bn last year.

Toughened sanctions

Iran is home to four of the six metals and mining companies in the list. National Iranian Copper Industries Company (NICIC) is second highest at 35, with a market capitalisation of $6bn. 

NICIC has decades of experience in the copper industry and is the largest exporter of non-oil related products in Iran, with exports regularly exceeding $1bn. But the firm and its compatriots, such as Mobarakeh Steel, will find their market capitalisation in dollar terms come under pressure amid toughened sanctions due to the devaluation of the Iranian riyal.

Jordan’s Arab Potash Company enjoyed success in 2011 with an 84 per cent rise in profits to $422.24m and recorded exports of 2.24 million tonnes. Despite the positive results, the firm still dipped in the MEED 100 table, sliding three places.

Gol e Gohar Iron Ore Company is a new entry to the list at number 94, with a market capitalisation of $2.4bn. The firm is the second largest iron ore producer in Iran and, along with Chadormalu, accounts for 80 per cent of the iron ore production in the country. The company produces 7.2 million tonnes a year of iron ore and also produces iron ore pellets.