Sale of Reko Diq
The federal government is considering selling its shares in the Reko Diq project to Saudi Arabia, following the kingdom’s expressed interest in the copper-gold mining venture, according to officials familiar with the matter.
Canadian company Barrick Gold Corporation currently owns 50% of the project’s shares under a revised agreement. The Chilean company Antofagasta withdrew from the project, receiving $900 million from three governmental entities, including the Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings Private Limited (GHPL), which collectively hold a 25% share in the project.
The remaining 25% belongs to Balochistan, with 15% fully funded and 10% carried for free. The newly formed Special Investment Facilitation Council (SIFC) has urged federal entities to finalize the transaction with Saudi companies in the coming months, with an initial deadline by the end of December, later extended to the end of March next year.
PPL and OGDCL have disclosed this information to the Pakistan Stock Exchange (PSX), and GHPL has posted similar information in compliance with Securities Act, 2015 rules and PSX regulations.
The official indicated that there are no plans to ask the provincial government to sell its shares instead of the federal government, as it would not be equitable for Balochistan.
The official clarified that Saudi investors have their own shareholding structure, with the Saudi government holding shares even if the company is privately owned.
Although the federal government is not overly enthusiastic about selling its shares, it hopes that this decision will attract further investment in other sectors.
They anticipate completing a third-party assessment of the share value by the beginning of December this year. Overall, federal government considers sale of Reko Diq project shares to Saudi Arabia to attract investment amid kingdom’s interest.
