Saudi Arabia is making a strategic move to invest in Pakistan’s Reko Diq project, one of the world’s upcoming largest copper mines. This initiative is part of the kingdom’s broader expansion into the mining sector.
Manara Minerals, a Saudi investment fund, is set to acquire a 10-20% stake in the $9 billion project, which is under development by Barrick Gold. The deal includes an agreement for future copper output, a key resource for clean energy.
The fund plans to purchase the stake from Pakistan’s government, which currently holds 25% of the mine. The transaction is estimated to be worth between $500 million and $1 billion, according to sources.
Barrick’s CEO, Mark Bristow, described the project as transformative for Pakistan’s economy. He welcomed Saudi Arabia as a regional partner, highlighting the potential benefits for the entire project.
Negotiations are advancing, with a Pakistani delegation recently visiting Riyadh. Pakistan’s petroleum minister anticipates a deal within six months.
The Reko Diq project promises significant output, with an estimated production of 400,000 tonnes of copper and 500,000 ounces of gold. However, it faces challenges from local insurgencies in Balochistan.
The initial phase requires $4.5 billion, funded by contributions from Barrick, Pakistan, and a consortium of lenders. A second phase, also costing $4.5 billion, will be financed by revenues from the first phase.
Saudi Arabia’s involvement aligns with its need for metals to support industrial growth. The kingdom views Pakistan as a reliable partner in this venture.
Barrick is also addressing issues in Mali, where operations were suspended due to a dispute with the military government. The company remains committed to resolving the situation.