Saudi Arabia to Acquire 15% Stake in Reko Diq Mining Project for $540 Million!

In a significant development, the federal cabinet of Pakistan has approved the sale of a 15 percent stake in the Reko Diq copper-gold mining project to Saudi Arabia for a total of $540 million (Rs. 150.27 billion). This move is set to enhance the economic ties between the two countries, particularly in the mining sector, and is part of a broader agreement under the Inter-Governmental Commercial Transactions Act.

The transaction will be carried out in two phases. The first phase will see Saudi Arabia acquiring a 10 percent stake for $330 million. Following this, the second phase will involve the purchase of an additional 5 percent stake for $210 million, bringing the total investment to $540 million.

The deal also comes with additional commitments from Saudi Arabia. The Saudi Fund for Development, which plays a key role in financing developmental projects, has pledged an additional $150 million to support the development of mineral resources in Balochistan. This financial backing will also contribute to further investments in mineral exploration in Chagai district, a region rich in untapped resources.

Reko Diq is one of the largest undeveloped copper and gold mines in the world, with significant reserves of 5.9 billion tons of ore, which contain 0.41 percent copper and 41.5 million ounces of gold. The project is expected to have a mining life of at least 40 years, providing a long-term source of revenue and employment opportunities for Pakistan, especially in the Balochistan region.

The project is jointly owned by Barrick Gold, which holds a 50 percent stake, and the federal and Balochistan governments, which together own the remaining 50 percent. The investment from Saudi Arabia is expected to further boost the development of the mine and strengthen the collaboration between the countries in the mining and resource development sectors.

This agreement comes at a time when Pakistan is working to expand its economic partnerships with countries across the world, and the Reko Diq project represents a valuable asset in the country’s natural resources sector. The involvement of Saudi Arabia, a major player in global energy markets, further underscores the importance of this project and the potential it holds for both nations.

Overall, the sale of this stake in the Reko Diq project is a positive step towards the growth and development of the mining industry in Pakistan, with promising prospects for future economic cooperation between Pakistan and Saudi Arabia. It also highlights the growing importance of international investments in the resource-rich regions of the world.