PTBP Web Desk
The Kingdom of Saudi Arabia (KSA) and Pakistan are in the final stages of negotiating a deal that would see Saudi Arabia acquiring a 15% share in the Reko Diq copper and gold mining project located in Balochistan. This significant investment deal, as reported by sources to Business Recorder, remains in the discussion phase with several details yet to be ironed out.
Currently, the Reko Diq Mine’s ownership is divided as follows: Barrick Gold holds a 50% stake, three federal state-owned enterprises (GHCL, OGDCL, and PPL) collectively own 25%, the Government of Balochistan secures a 15% fully-funded interest, and an additional 10% on a free-carried basis. This complex ownership structure underscores the project’s national and international significance.
Dr. Musadik Masood Malik, Pakistan’s Minister for Petroleum and Natural Resources, recently made a trip to Riyadh to promote investment opportunities within Pakistan, particularly highlighting the potential in Balochistan. During this visit, he presented detailed insights into Pakistan’s natural resources, offering incentives aimed at attracting Saudi investment.
According to sources, the Saudi side anticipates that post the completion of the Reko Diq feasibility study by the end of this month, a more definitive decision on proceeding with the investment can be made. This was echoed by Pakistan’s ambassador to Saudi Arabia in recent communications with Islamabad. The timeline for the Financial Close (FC) of the project is set for June 2025.
The Joint Secretary of Corporate Finance from the Ministry of Finance (MoF) mentioned that the Asian Development Bank (ADB) is expected to approve a third-party guarantee arrangement by the end of May 2025. This guarantee is crucial for covering the equity funding obligations of Balochistan Mineral Resources Limited (BMRL) and for ensuring the project’s timely financial closure. The process to secure this guarantee has been extended multiple times since December 2022, highlighting the urgency for swift action.
Manara Minerals Investment Co., backed by the Saudi Sovereign Fund (SSF), has shown keen interest in acquiring a $1 billion share in the project, which is currently controlled by Barrick Gold Corporation. A delegation from Manara is scheduled to visit next month, signaling a move towards more concrete negotiations.
The Petroleum Division is actively working on restructuring the Geological Survey of Pakistan (GSP) based on recent audit recommendations. They are also coordinating with the Ministry of Inter-Provincial Coordination (IPC) to hold a meeting of inter-provincial ministers and chief secretaries to discuss and harmonize the minerals regulation framework across Pakistan. Updates on this progress have been shared with the Executive Committee of the Special Investment Facilitation Council (SIFC), which is pivotal in making key investment decisions.
Dr. Musadik Malik, speaking to the media, conveyed optimism about the negotiations with Saudi Arabia, stating that the matters are advancing positively with an expectation of finalization soon. A dedicated price negotiation committee is managing the negotiations to ensure a timely agreement.
The Petroleum Division, through its Directorate General of Mines (DG-Mines), has established a Mineral Cell and is progressing on the Mineral Policy in coordination with the SIFC and other stakeholders. They’ve also benchmarked international mining laws and updated local regulations to align with best practices, ensuring a conducive environment for investment.
