Saudi Arabia is on the brink of making a substantial investment in Pakistan’s Reko Diq copper and gold mining project, nearing a deal worth nearly $1 billion, Bloomberg reports.
According to reports, Manara Minerals Investment Co., backed by the Saudi sovereign wealth fund, is close to finalizing plans to inject a minimum of $1 billion into the Reko Diq project, which is currently under the control of Barrick Gold Corp.
Reports suggested that a preliminary agreement outlining the terms of the investment could be unveiled within the next few weeks. However, discussions are ongoing, and there is the possibility of negotiations falling through or experiencing delays.
Representatives for Saudi Arabia’s Public Investment Fund, a significant shareholder in Manara, declined to comment on the matter. Meanwhile, inquiries directed at Barrick went unanswered.
Saudi Arabia’s interest in diversifying its investment portfolio beyond traditional sectors is evident. Pakistan’s Finance Minister Muhammad Aurangzeb has confirmed the kingdom’s keen interest in various sectors, including metals and mining, hinting at potential investment announcements soon.
The potential investment deal followed a significant meeting earlier this month between Saudi Crown Prince Mohammed bin Salman and Pakistan Prime Minister Shehbaz Sharif.
During the meeting, Pakistan actively presented a range of investment opportunities to Saudi delegates, spanning sectors such as solar energy, hydropower, mining, and technology.
Situated in the Baluchistan region bordering Afghanistan and Iran, the Reko Diq project is slated to commence production in 2028.
Barrick Gold holds a 50% stake in the project, with the federal government of Pakistan owning 25% and the Baluchistan regional government holding the remaining shares.
Saudi Arabia has been in discussions with Pakistan regarding the acquisition of a portion of the government’s stake in Reko Diq, as confirmed by Barrick CEO Mark Bristow in a previous interview.
While Barrick Gold has expressed its support for any decision made by the government regarding Saudi involvement, Bristow emphasized that Barrick would maintain its equity in the project, regardless of the potential entry of new stakeholders.
