- A Gulf country will initially obtain 10% of the shares.
- Foreign exchange will be introduced into Pakistan.
- Revised valuation of project shares in the works.
ISLAMABAD: Pakistan and the Kingdom of Saudi Arabia (KSA) are set to finalize details of the multi-billion dollar Reko Diq project in the coming months, News reported Saturday.
In another relevant development, the revised project appraisal has been completed and both parties are at the stage of finalizing the project details.
The Gulf country will get 10% share initially, followed by an increase in the future.
A person close to the ongoing negotiations told the publication: “One of the main stumbling blocks in finalizing the project was resolved amicably, as Saudi Arabia wanted to maintain a bank account outside Pakistan to use the foreign exchange amount in case of purchasing machines. .
Now, both sides have agreed that foreign exchange will be imported into Pakistan, and both sides have also reached a broader agreement to this effect,” the senior official said.
Asked about the timeline for closing the deal, the official said that could not yet be determined, but that the deal was heading toward the final stages and could be closed at any time in the near future.
Responding to another question on the revised stake valuation of the project, the source said the project was in its preparatory phase but the revised exercise had resulted in improved stake valuation.
The results of the updated assessment have been shared with the other side and negotiations are reaching the conclusion stage, the official said.
This comes after Saudi Mines Minister Bandar Alkhorayef confirmed that the kingdom’s mining company, Manara Minerals, was considering investing in Pakistan’s Reko Diq mine, saying the Saudi Development Fund could contribute more than 100 million dollars to Pakistan’s mining infrastructure.
“Part of what we are looking at is how we can help Pakistan also in some infrastructure,” Alkhorayef said in an interview on the sidelines of the Future Minerals Forum in Riyadh.
“Without this infrastructure, the economic aspects of the deal are not attractive, which is why, through the Saudi Development Fund, we are considering how we can finance it.”