ISLAMABAD: Saudi Arabian mining fund Manara Minerals is reportedly set to acquire a 10-20% stake in Pakistan’s Reko Diq copper and gold project for approximately $500 million to $1 billion, according to a report by the Financial Times on Tuesday.
Details of the Stake Acquisition
Manara Minerals plans to purchase the stake from the government of Pakistan, which currently owns 25% of the mine. The Reko Diq project, co-developed by Canada’s Barrick Gold, is regarded as one of the world’s largest untapped copper and gold reserves.
Executives from Manara Minerals visited Pakistan in May last year to explore the potential investment. According to the report, the fund aims to acquire 10-20% of the $9 billion project and secure an offtake agreement for future copper and gold output.
Current Ownership Structure
The Reko Diq mine is owned as follows:
- 50% by Barrick Gold
- 25% by the government of Pakistan
- 25% by the government of Balochistan
Barrick Gold, which leads the project, has described Reko Diq as one of the most significant underdeveloped copper-gold resources globally.
Saudi Arabia’s Growing Interest
Barrick Gold’s CEO had previously indicated openness to including Saudi Arabia’s Public Investment Fund (PIF) as a partner in the Reko Diq project. The Financial Times noted that Saudi Arabia is among Pakistan’s largest external creditors, providing loan rollovers, central bank deposits, and oil facilities to support Pakistan’s economy. However, the kingdom’s willingness to extend financial aid is reportedly waning, prompting the government to aggressively court Saudi investments.
Timeline and Production Potential
After years of political instability and judicial challenges surrounding the project, work on Reko Diq is advancing. Barrick Gold expects production to commence by 2028, coinciding with an anticipated global copper shortage.
The project’s development plan includes:
- Phase 1 (Starter Mine): $5.5 billion initial investment to produce 200,000 tonnes of copper concentrate and 250,000 ounces of gold annually.
- Phase 2 (Expansion): $3.5 billion additional investment to double production to 400,000 tonnes of copper and 500,000 ounces of gold annually.
Significance of the Deal
The investment reflects Saudi Arabia’s strategic interest in diversifying its economic portfolio and strengthening its presence in critical resource sectors. For Pakistan, the deal offers much-needed foreign investment and potential economic relief through the development of a world-class mining project.
