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Thar's Gold In Them Thar Hills--of Sand
Ma'aden was formed as a Saudi joint stock company on 23 March 1997 for the purpose of facilitating the development of Saudi Arabia's mineral resources.
Since that time, Ma'aden's activities have focused on its active gold business which has grown in recent years to include the operation of five gold mines: Mahd Ad Dahab, Al Hajar, Sukhaybarat, Bulghah, and Al Amar.
Ma'aden is now expanding its activities beyond its gold business with the development of its Phosphate Project, Aluminium Project, and Other Projects.
In addition, since its formation, Ma'aden (through the Ministry of Petroleum & Mineral Resources) has collaborated with the Government and local legislators to develop a regulatory framework for the governance of the mining industry in Saudi Arabia.
In 1998, the Saudi Arabian Mining Company (Ma'aden) requested ESF to replace a large global company in trying to uncover why its gold mines were not producing at the level indicated by the wealth of gold ore know to be at the site.
ESF conducted a Needs Analysis for the mine located at Mahad Ad Dahab and spent one month in Riyadh and Jeddah analyzing the mines' performance problems.
The analysis reported seventeen performance problems and was able to identify the symptoms, causes, and solutions that would save the mine nearly 30,000,000 Saudi riyals equivalent to US$8M.
One of these performance problems was LOW MORALE resulting in Poor Performance & Poor Production.
The Symptoms included the following:
- Security Guard (Saudi) steals 6.3 Kilos of Gold Bullion, resulting in prosecution & dismissal.
- Employee (Saudi) assists Security Guard in theft of Gold Bullion, resulting in prosecution & dismissal.
- TCN (Philippines) employee develops split personality resulting in several demotions.
- TCN (Philippines) employee develops mental disorder, e.g., prolonged, uninterrupted staring into swimming pool, resulting in dismissal.
- TCN (Philippines) employee sent letter threatening to bomb mine site, resulting in prosecution & dismissal.
- Employee (Saudi) refused to work; planned sit-down strike, resulting in administrative action.
- Employee (Saudi) embattled with management over refusal to extend residency for his family who were threatened by civil unrest in home country of Somalia.
- Eight Employees (Saudis & Filipinos) became intoxicated underground resulting in equipment damage.
- TCN (Philippines) employees routinely given Salary Warning Deductions without due cause.
- TCN (Philippines) employees (driver and passenger of Forklift) lost two days salary for unavoidable minor accident while coming to the rescue of other employees who requested assistance.
- TCN (Philippines) employee receiving same salary as less educated employee who has higher grade, resulting in resignation.
- TCN (Philippines) employees routinely train Saudis who earn more than they earn.
- TCN (Philippines) employees routinely supervise Saudis who earn more than they earn.
- Employee (Saudi) received warning letter from IRD for causing minor damage to equipment which was eventually (shortly) traced to faulty manufacturer's specifications.
- Employee (Saudi) issues complaint for below-grade evaluation resulting in less than 1% annual salary increase (48 Saudi riyals = US$12.80) although evidence indicates very high performance level, resulting in refusal to continue performing at high level, resorting instead to acceptable, mediocre effort.
- Employees (Saudi & TCNs) routinely complain of highly subjective appraisals.
- Employee (TCN geologist) who held same professional level as western ex-pats resigned when not allowed township residence.
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