Federal cabinet approves the sale of 15 percent shares in Reko Diq Mine worth $540 million to KSA
ISLAMABAD ( WEB NEWS )
The federal cabinet has approved the sale of 15 percent shares in Reko Diq Mine worth $540 million to Saudi Arabia (KSA) under the Inter-Governmental Commercial Transactions Act.
Saudi Arabia will pay Pakistan $540 million (approximately Rs150.27 billion) in two installments. It will pay $330 million as a first instalment and 10 percent shares will be transferred. In the second phase, $210 million will be paid for the transfer of remaining five percent shares.
The Saudi Fund for Development will also provide $150 million for the development of minerals in Balochistan.
The Reko Diq Mines hold vast gold and copper reserves. It is believed to have the world’s fifth-largest gold deposit.
The project is among the world’s largest undeveloped copper-gold mines. It has estimated reserves of 5.9 billion tonnes of ore grading 0.41 percent copper and gold reserves amounting to 41.5 million oz, and a mining life of at least 40 years.
The Barrick Gold owns a 50 percent stake in the mine, whereas federal and Balochistan governments collectively own the remaining 50 percent shares, ensuring substantial benefits for the region.
Reko Diq’s development will unlock significant economic potential for Pakistan. The project’s successful implementation will not only boost the mining sector but also create job opportunities, enhance infrastructure, and provide long-term revenue streams for both federal and provincial governments.
Saudi Arabia has also agreed to invest in Chagai for mineral exploration under its “broader strategy to diversify investments and collaborate with strategic partners.”
Federal Minister for Petroleum Dr. Musadik Malik stated that no deal has been made with Saudi Arabia regarding Reko Diq as of now, and the talks about such a deal with Saudi Arabia are not accurate. In an informal conversation with the media in the federal capital Islamabad, Musadik Malik said that the federal cabinet has not given any approval for such a deal either, but talks with Saudi Arabia are ongoing. He mentioned that discussions about investment in Reko Diq with Saudi Arabia are continuing positively. However, there has been no discussion regarding the percentage of shares in Reko Diq. He added that a deal regarding the shares of Reko Diq with Saudi Arabia is expected to be finalized next year.