Saudi Arabia to Invest in Pakistan Mine Project

Saudi Arabia is edging closer to finalizing a deal to acquire a minority stake in a Pakistan mine controlled by Barrick Gold Corp. Manara Minerals Investment Co, backed by the Saudi sovereign wealth fund, is set to inject a minimum of $1 billion into the Reko Diq copper and gold mining project. Sources suggest that a preliminary agreement on transaction terms could be announced within the next few weeks.

The Saudi company, with potential plans to increase its investment in the future, is eyeing the mine, which is partially owned by the Pakistan government. Discussions are ongoing, although there is a possibility of the talks collapsing or facing delays.

Pakistan's Finance Minister Muhammad Aurangzeb revealed that Saudi Arabia is keen on investing in various sectors, including metals and mining. The minister hinted at imminent announcements regarding several projects that are nearing fruition.

During a recent visit, Pakistan presented a spectrum of investment opportunities to a Saudi delegation, encompassing sectors such as solar, mining, hydropower, and technology. Saudi Foreign Minister Prince Faisal bin Farhan affirmed the Gulf kingdom's intention to proceed with these opportunities.

The Reko Diq project, situated in Balochistan's Chagai district, is slated to commence production in 2028. Barrick Gold Corp holds a 50% stake in the project, while the federal government of Pakistan and the Balochistan regional government own 25% and 25%, respectively.

Saudi Arabia has been in discussions with Pakistan to acquire a portion of the government's stake in Reko Diq, as confirmed by Barrick's CEO Mark Bristow. Bristow assured that Barrick would support any decision made by the government in collaboration with the Saudis, emphasizing that Barrick's equity in the project would remain intact.

The potential investment by Saudi Arabia in the Reko Diq mine signifies a significant development in the mining sector, fostering international partnerships and economic growth for both countries. As negotiations progress, the outcome of this deal could have far-reaching implications for the future of mining operations in Pakistan.