Pakistan and Saudi Arabia are progressing towards finalizing the details of the multibillion-dollar Reko Diq mining project within the coming months.
The revised valuation of the project has been completed, paving the way for further negotiations. Initially, Saudi Arabia will acquire a 10% stake in the project, with the potential to increase its share in the future.
A key issue regarding the management of foreign exchange has been resolved, with both sides agreeing to bring the funds into Pakistan for operational purposes. The agreement includes provisions for foreign exchange usage in machinery procurement while maintaining compliance with local requirements.
Negotiations have advanced significantly, and while no exact timeline is confirmed, officials expect the deal to be finalized soon. The updated valuation has enhanced the project’s share value, and these results have been shared with Saudi counterparts, bringing talks closer to conclusion.
Saudi Arabia’s Mining Minister, Bandar Alkhorayef, previously stated that Saudi mining company Manara Minerals is keen on investing in Reko Diq. Additionally, the Saudi Development Fund may contribute over $100 million to support mining infrastructure in Pakistan, recognizing that enhanced infrastructure is crucial for the project’s economic viability.
