Saudi Arabia’s investment mining fund, Manara Minerals, is set to acquire a 10-20% stake in Pakistan’s Reko Diq copper and gold mining project, according to a report by the Financial Times.
The project, led by Canada’s Barrick Gold, is anticipated to become one of the world’s largest copper mines and a crucial source for the clean energy transition.
Manara Minerals plans to purchase the stake, valued between $500 million and $1 billion, from Pakistan’s government, which currently holds a 25% share in the project. Alongside equity, Manara seeks an offtake agreement to secure future copper supplies.
“This is a massive project, it will change the Pakistan economy. It’s very big,” Barrick’s chief executive Mark Bristow said in an interview in Riyadh on the sidelines of a mining summit there last week.
An investment by Saudi Arabia would be “good for the whole project because it brings a heavyweight regional partner into the mix”, he added.
Reko Diq, located in Balochistan near the Afghan and Iranian borders, is expected to produce up to 400,000 tonnes of copper and 500,000 ounces of gold annually upon completion.
The project’s first phase, costing $4.5 billion, will be funded through a combination of $1.5 billion from Barrick, a similar amount from Pakistan, and contributions from global lenders, including the World Bank and the Asian Development Bank. Revenues from the initial phase will finance the second $4.5 billion phase.
A second phase of the mine, estimated to cost a further $4.5 billion, would be funded by the revenues generated during the first phase, Bristow said.
Some infrastructure is already being developed at the site, including an airstrip and housing for 1,000 workers, in anticipation of the mine construction beginning soon.
Pakistani officials have been actively courting Saudi investments, with Petroleum Minister Musadik Malik indicating during a high-level delegation visit to Riyadh that a deal could be finalised within six months. Saudi Industry and Mineral Resources Minister Bandar Alkhorayef confirmed Manara Minerals’ interest in the project, noting its importance for the kingdom’s industrial needs.
“[Manara] will be a good tool for us to ensure that Saudi Arabia secures the minerals it needs for its future industrialisation and needs,” said Alkhorayef. “It’s a platform where we can see us working with other friendly countries that look at Saudi as a reliable partner, like Pakistan.”
