PTBP Web Desk
Pakistan’s mining sector, Saudi Arabian mining fund Manara Minerals is poised to acquire a 10% to 20% equity stake in the Reko Diq copper and gold project. According to a report by the Financial Times on Tuesday, this investment could amount to between $500 million and $1 billion.
The Reko Diq project, situated in the restive southwestern Balochistan province of Pakistan, is one of the world’s largest untapped copper and gold reserves. Manara Minerals, a joint venture between the Saudi Arabian Mining Company (Ma’aden) and the Saudi sovereign wealth fund, the Public Investment Fund (PIF), would purchase this stake from the Pakistani government. The project is co-developed by Barrick Gold, a Canadian mining giant, which shares ownership with the government of Pakistan.
The Reko Diq area has been recognized for its substantial mineral wealth, primarily copper and gold, and has been a point of interest for global mining companies for decades. Barrick Gold, in partnership with the Pakistani government, has been instrumental in moving forward the development of this massive project. The mine’s potential to contribute to Pakistan’s economy through exports, job creation, and royalties is considerable, which makes it a focal point for international investment.
This investment by Manara Minerals is not just a financial transaction but a strategic expansion into one of the world’s promising mineral-rich areas. Last week, Pakistani Petroleum Minister Musadik Malik announced that Manara could invest in the Reko Diq mine within the next two quarters, indicating ongoing discussions and interest from the Saudi side.
Manara’s engagement with this project began with visits by its executives to Pakistan in May of the previous year, where they held talks about acquiring a stake. At the time, Robert Wilt, who was then acting chief executive of Manara and is now CEO of Ma’aden, told Reuters that Reko Diq was among various opportunities the company was evaluating. This shows Manara’s intent to diversify its investments and leverage the global minerals market to support Saudi Arabia’s economic diversification away from oil dependency.
The involvement of Manara in Reko Diq is part of a broader strategy by Saudi Arabia to invest in overseas mining assets, aiming to become a significant player in the global minerals industry. This move also aligns with Pakistan’s interest in attracting foreign investment to bolster its economy, especially in sectors like mining that promise long-term economic benefits through resource exploitation.
Petroleum Minister Musadik Malik highlighted that Pakistan is not limiting its discussions to just Manara but is actively engaging with other Gulf countries for mining opportunities. This approach could lead to a surge in foreign direct investment in Pakistan’s mining sector, potentially transforming the economic landscape of Balochistan by providing job opportunities and infrastructure development.
While the investment is promising, the Reko Diq project has faced numerous challenges, including political and security issues in Balochistan, legal disputes over mining rights, and the need for substantial infrastructure to make mining operations viable. The involvement of foreign investors like Manara could bring not only capital but also technical expertise and possibly help in mitigating some of these risks through international cooperation.
