What’s next in the Reko Diq saga?
While the government may have struck a lucrative deal, there is a long road ahead
The new deal between the Federal and provincial governments and Barrick Gold is being framed as a potential game changer for the economy.
The Federal Government, the Balochistan Government, GHPL (Government Holdings Pakistan Limited), and Barrick Gold Corporation have signed a non-binding framework agreement with Oil & Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL) to facilitate the implementation of a joint mining project at Reko Diq mine.
The Federal and provincial governments of Balochistan, as well as Barrick Gold Corporation, have struck a deal worth $10 billion. According to the deal, Barrick Gold will own 50% of the project, with the remaining 50% shared equally between the Federal and Balochistan governments.
The Federal Government's interest will be split among three state-owned companies: OGDC, PPL, and GHPL, each of which will control 8.33 percent of the project. In addition, free equity will account for 10% of the total 25% interest of the Balochistan Government in the mine.
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