Saudi Arabia has proposed a 15% stake in Pakistan’s Reko Diq mining project through Manara Minerals, with the deal also including a grant for road infrastructure development around the site. This proposal has been approved by the Saudi Investment and Finance Company (SIFC), but the final decision will be made by Pakistan’s Cabinet Committee on Inter-Governmental Commercial Transactions. A negotiation committee will be tasked with reviewing pricing and finalizing the agreement with Manara Minerals.
Currently, Barrick Gold holds a 50% stake in the Reko Diq project, with another 25% owned by three federal government entities and the remaining 25% by the Balochistan province. Barrick Gold expects to complete the feasibility study for the project by December 2024 and anticipates initial production to start by 2028.
Pakistan is seeking to attract up to $5 billion in Saudi investments in the mining and agriculture sectors by June 2025. To address concerns regarding profit repatriation, the State Bank of Pakistan has been instructed to prioritize returns for Saudi investors.
The proposed agreement is expected to enhance economic relations between Pakistan and Saudi Arabia, potentially generating job opportunities for the youth in Balochistan. Additionally, the development of nearby blocks is anticipated once commercial operations at Reko Diq commence.
