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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Asad Ullah Kamran
The author is a staff member and can be reached at [email protected]

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