- Committee formed to explore the financing options for the upgrading of public relations
- The project should increase freight services, mineral transport.
- The Saudi company provides up to $ 1 billion in investment in the Reko Diq mine.
Prime Minister Shehbaz Sharif ordered the authorities on Tuko Diq on Tuesday in Balutchistan to the Pakistan Railways (PR) network by 2028 to meet future transport and freight needs.
This decision will support the development of the mine, one of the largest copper deposits underdeveloped in the world, which hoped to generate $ 70 billion in available cash flows and $ 90 billion in operating cash flows.
American Miner Barrick Gold has a 50% participation in the Reko Diq mine, and the governments of Pakistan and the province of Baloutchistan hold the other 50%.
The mining giant considers that the project has a significant impact on the economy in difficulty of Pakistan.
While presiding over a meeting today, Prime Minister Shehbaz has given orders for the training of an inter -ministerial committee to deal with financing issues to improve and develop Pakistani railways.
The Committee will present recommendations concerning the funding required for the development of railways from Pakistan and its extension to Reko Diq.
During the meeting, the Prime Minister was informed of the upgrade of the ML-1 and ML-3 railways as well as the overall development of Pakistani railways to meet the requirements of future transport and freight services.
The Prime Minister noted that the Pakistani railways served as a skeleton for the country’s economy and communication.
“Pakistan railways are a cheap source of transport, fast and respectful of the environment,” said Prime Minister Shehbaz.
He added that the mines and the mineral sector of Balutchistan will develop and that new job opportunities will be created for the inhabitants of the region after having linked the railways with Reko Diq.
Manara minerals from Saudi Arabia announced in January that it planned to acquire a 10 to 20% stake in the Reko Diq Copper and Gold project, the agreement should bring $ 500 million to $ 1 billion.
In April, the shareholders of the REKO DIQ joint venture approved a revised feasibility study and gave conditional approval in the development of phase 1, subject to guaranteeing up to $ 3 billion in funding.
The project, which was delayed due to a long -standing dispute that ended in 2022, should start production by the end of 2028. It will produce 200,000 tonnes of copper per year in its first phase, with an estimated cost of $ 5.5 billion. The first phase should be completed by 2029.
The meeting was followed by Deputy Prime Minister and Minister of Foreign Affairs Ishaq Dar, Defense Minister Khawaja Asif, Minister of Economic Affairs Ahad Khan Cheema, Minister of Maritime Affairs Junaid Anwar Charthry, Minister of State with railways Bilal Azhar Kayani, special assistant to Prime Minister Tariq Fatemi, and senior officials.