Saudi Arabia inches closer to $1bn Reko Diq deal

Saudi Arabia is inching closer to sign a deal for a minority stake in Barrick Gold’s Reko Diq copper and gold project located in Chagai district in Balochistan, ARY News reported.

Saudi sovereign wealth fund-backed Manara Minerals Investment Co., is likely to invest at least $1 billion in the project, Bloomberg reported on Thursday.

According to the report, the company could announce a preliminary agreement in the next few weeks.

The development came amid the visits of the high-level Saudi delegations to Pakistan in the recent day.

During a joint press conference with Foreign Minister Ishaq Dar at the Ministry of Foreign Affairs on April 16, Saudi Arabia’s Foreign Minister Prince Faisal bin Furhan Al Saud said that Pakistan had significant investment opportunities in a multitude of sectors.

Pakistani officials presented a broad presentation on several strategic areas, he said, however, he declined to disclose the targeted sectors.

“This gave us some significant confidence that we will be able to move forward on those projects that we decide to identify as worthy of investment,” Al Saud added.

Earlier, sources had said that Saudi Arabia will invest $1 billion in Reko Diq gold and copper project.

Sources at finance ministry said that the OGDCL and the PPL’s shares will be sold to Saudi Arabia. “There are preparations for Saudi investment next month,” sources said.

Reko Diq is considered one of the world’s largest undeveloped copper-gold mines. The project is being restarted after remaining on hold since 2011.

“Reko Diq is one of the bigger copper-gold undeveloped projects in the world,” said Mark Bristow, chief executive of Barrick, which aims to start mining in 2028 subject to an ongoing feasibility study. “It’s a very big deal. Any copper mine right now is a big deal.”

Last year in December, Pakistan and Barrick Gold Corporation signed $8 billion landmark agreement on Reko Diq project.