- Saudi Arabia will acquire 15% of the capital in two phases.
- A first tranche of $330 million will soon be transferred.
- Reko Diq has 5.9 billion tonnes of copper-gold ore reserves.
ISLAMABAD: The government has approved the sale of 15% stake in the Reko Diq project, valued at $540 million (approximately Rs. 150.27 billion), to the Kingdom of Saudi Arabia (KSA) under the intergovernmental commercial transactions law, News reported.
“The Federal Government has given the green light to the much-anticipated sale of the Federal Government’s 15% stake in the Reko Diq project. The KSA will make payment in two installments. In the first phase, Saudi Arabia will acquire a 10% stake in the project, for which $330 million will be transferred to Pakistan. The remaining 5% will be purchased in the second phase for $210 million,” said a senior oil division official. News.
“With the approval of the federal cabinet, all necessary formalities for the transaction will be expedited, and the first tranche of $330 million is expected shortly after the transfer of the initial 10% stake. The agreement marks a new era of collaboration between Pakistan and Saudi Arabia, with both countries poised to reap significant benefits from this partnership.
In addition to purchasing 15% of the shares, the Saudi Fund for Development has pledged $150 million to support the development of mineral resources in Balochistan. Separately, Saudi Arabia has shown keen interest in investing in mineral exploration activities in Chagai, where Reko Diq is located.
The Reko Diq project is among the largest undeveloped copper and gold mines in the world. The Reko Diq Mine is a planned mining operation, located near the town of Reko Diq in Chagai. Reko Diq has estimated reserves of 5.9 billion tonnes of ore grading 0.41% copper and gold reserves of 41.5 million ounces, and a mine life of at least 40 years old.
Barrick Gold holds a 50% stake in the mine, while the federal and Balochistan governments collectively hold the remaining 50%, ensuring substantial profits for the region.
The development of Reko Diq is expected to unlock significant economic potential for Pakistan. The successful implementation of the project will not only boost the mining sector but also create employment opportunities, improve infrastructure and provide long-term sources of revenue to the federal and provincial governments.
This partnership with Saudi Arabia reflects growing international confidence in Pakistan’s mining sector.
Saudi Arabia’s participation in the project aligns with its broader strategy to diversify investments and collaborate with strategic partners.