- The Minister of Oil rejects media reports on the participation of Reko Diq.
- The government is having positive discussions with the kingdom in this regard: Malik.
- “A deal with Saudi Arabia on Reko Diq shares will be reached next year.”
Oil Minister Musadik Malik has dismissed media reports claiming the federal cabinet has given the green light to the sale of a 15% stake in the $540 million Reko Diq project to the Kingdom of Saudi Arabia (KSA) under the Intergovernmental Commercial Transactions Act. .
“No agreement has yet been reached with Saudi Arabia for the Reko Diq project… such reports are not true,” the minister said while speaking to journalists in Islamabad.
However, he added, the government is certainly having “positive discussions” with the kingdom in this regard. “So far, no negotiations with Saudi Arabia have been finalized and no approval has been given by the cabinet,” he added.
In addition, the minister said, an agreement would be reached with Saudi Arabia regarding Reko Diq’s shares next year.
Earlier today, it was reported that the federal cabinet had given the green light to the much-anticipated sale of a 15% stake by the federal government in the Reko Diq project.
“The KSA will make the payment in two installments. In the first phase, the KSA 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 dollars,” the report said.
Besides purchasing 15% of the shares, the statement added, the Saudi Fund for Development has pledged $150 million to support the development of mineral resources in Balochistan.
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.