Reko Diq Acquisition
Saudi Arabia’s Investment Minister, Khalid Al-Falih, announced on Thursday that a significant partnership in Pakistan’s Reko Diq project is set to be finalized in the coming weeks.
The deal involves a collaboration between Saudi Arabia, Pakistan’s state-owned enterprises, and Barrick Gold, a Canadian mining company.
Reko Diq, one of the world’s largest undeveloped copper-gold deposits, is a highly coveted resource in Pakistan’s Balochistan province.
The project’s ownership structure is already established: Barrick Gold holds a 50% stake, while the remaining shares are distributed among several Pakistani stakeholders.
Pakistan’s federal state-owned enterprises control 25%, Balochistan owns 15% on a fully funded basis, and the province holds an additional 10% on a free carried basis, ensuring that Balochistan benefits from the project without having to contribute capital.
Al-Falih, speaking during a high-level event, emphasized the importance of this partnership not only in the context of mining but also for enhancing bilateral trade and investment ties between Saudi Arabia and Pakistan.
He expressed Saudi Arabia’s interest in exploring other sectors beyond mining, such as renewable energy, and emphasized that the kingdom is looking forward to deeper economic collaboration with Pakistan.
“We are not just talking about mining; this partnership represents the strength of our broader investment agenda in Pakistan,” Al-Falih said.
“Reko Diq is only one piece of the puzzle. We are also looking into renewable energy projects and opportunities to strengthen trade and investment between our two nations.”
He went on to reveal that Saudi Arabia is gearing up for an extensive wave of construction and procurement projects in the coming years. “In the next few years, we will be awarding construction and material procurement contracts worth around $1.8 trillion,” the minister said.
“The value of construction and exploration & production (E&P) procurement will reach about $200 billion annually, year after year.”
This statement highlights the enormous economic ambitions of Saudi Arabia under its Vision 2030 plan, which aims to diversify the kingdom’s economy away from oil dependence by investing in industries like mining, renewable energy, and infrastructure development.
The Reko Diq venture is part of these larger ambitions, as Saudi Arabia seeks to expand its footprint in the global mining sector while securing critical minerals for its own industrial and economic development.
The Reko Diq project, situated in the mineral-rich region of Balochistan, has long been seen as a key component of Pakistan’s economic growth potential.
Once operational, the mine is expected to generate significant revenues for both Pakistan and its international partners, creating job opportunities and boosting the local economy.
The project’s development has faced various legal and regulatory hurdles over the years, but the new partnership marks a crucial step toward overcoming those challenges and realizing the mine’s full potential.
In conclusion, Saudi Arabia’s commitment to the Reko Diq project underscores its strategic interest in Pakistan and its natural resources, while also signifying a broader push to diversify its investments globally.
With a focus on mining, renewable energy, and trade, the partnership between Saudi Arabia and Pakistan is poised to yield substantial economic benefits for both nations in the years to come.
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