Saudi Arabia’s Public Investment Fund (PIF) has proposed acquiring the 15% stake in the Reko Diq mining project, alongside a grant for infrastructure development around the mining area through Manara Minerals.
According to a news report, the offer includes cash for the shares and a grant to construct essential infrastructure in the region.
In response, Pakistan has formed a negotiation committee to review the offer and recommend a final price to the federal cabinet for approval. The federal government, which currently holds a 25% stake in the Reko Diq project, plans to sell 15% of its share to Saudi Arabia
This will be the first investment under the Special Investment Facilitation Council (SIFC) initiative.
As per Soures, the Saudi offer will be reviewed by the forthcoming negotiation committee, which will finalize the terms of the deal. If successful, this investment could strengthen economic ties between Pakistan and Saudi Arabia, while also creating job opportunities in the region.
In addition to the share acquisition, Saudi Arabia has offered a grant for road infrastructure development around the Reko Diq site. The government aims to construct the Mashkhel-Panjgur road to facilitate smoother operations in the mining area. The Ministry of Economic Affairs is coordinating with the Saudi Fund for Development (SFD) to finalize the road project, with feasibility studies expected to follow.
The Reko Diq project, owned 50% by Barrick Gold, 25% by three federal government entities, and 25% by Balochistan, is undergoing feasibility updates, with completion expected by December 2024. Commercial production is anticipated to begin by 2028. The government hopes to attract joint investments from Saudi Arabia and other stakeholders to develop adjacent blocks.
