Dubai: Saudi Arabia is looking to acquire a 15 per cent stake in Pakistan’s Reko Diq mining project, which is a copper-gold mine that’s in the making, according to a press release.
This stake will be purchased through Manara Minerals, a joint venture between Saudi Arabian Mining Co (Maaden) and the Public Investment Fund (PIF), as reported by Karachi-based news outlet The Express Tribune.
The mining project is estimated to cost between $6 billion (Dh22 billion) and $6.5 billion (Dh23.8 billion).
Pakistan has established a negotiation committee to evaluate the Saudi offer and propose the final terms to the government, as indicated by unnamed government officials.
This proposal marks the first initiative under Pakistan’s special investment facilitation council, which streamlines and accelerates foreign investments and project developments.
According to the release, the federal government of Pakistan will sell 15 per cent of its 25 per cent stake in the Reko Diq project to Saudi Arabia.
Currently, mining company Barrick Gold holds a 50 per cent stake, while the government of Balochistan owns the remaining 25 per cent.
Saudi Arabia will invest in infrastructure development around the mining site. Discussions with the Saudi fund for development are underway to finalise plans for a road project near the area.
The first production from the Reko Diq project is anticipated by 2028.
