Pakistan Anticipates Signing a "Reko Diq deal" with Saudi Arabia before the End of December: PM Kakar
The government of Pakistan is in talks with Saudi Arabia to sell shares in the Reko Diq project, which is a massive gold and copper mine in Balochistan that is one of the largest in the world, according to acting prime minister Anwaar-ul-Haq Kakar. The prime minister voiced hope that a resolution with Saudi Arabia may be achieved by the end of December.
Karobar
Under the amended agreement, three governmental entities—the Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings Private Limited (GHPL)—collectively hold a 25% share in the project. The Canadian company Barrick Gold Corporation owns 50% of the project's shares, while the Chilean company Antofagasta withdrew in exchange for a $900 million payment. Balochistan owns the remaining 25% of the company, of which 10% is free-carried and 15% is fully funded.
The Reko Diq project has the potential to generate 200,000 tons of copper and 250,000 ounces of gold yearly for more than 50 years, making it one of the greatest undeveloped copper-gold zones in the world.
CEO of Barrick Mark Bristow has stated that while the business is not looking to sell its share, it would not be against Saudi Arabia acquiring the Pakistani government's equity, potentially changing the ownership structure.
The talks are still continuing on, according to Prime Minister Kakar, who expressed optimism that an agreement with Saudi Arabia might be struck by the December deadline.
Barrick representatives were among the dignitaries from Saudi Arabia that Pakistan invited in August for a mining conference in Islamabad. In Jeddah, Barrick and Ma'aden, the state-owned mining firm of Saudi Arabia, work together to manage a copper project.
As part of its endeavor to finance energy transition projects, the Saudi Arabia Public Investment Fund (PIF) has been looking for investments in copper projects throughout the world. PIF had earlier this year agreed to buy 10% of the base metals division of the Brazilian mining firm Vale.
In addition, Prime Minister Kakar announced the creation of the Special Investment Facilitation Council (SIFC) in July, which would act as a single point of contact for issues pertaining to foreign investors. The SIFC seeks to protect foreign direct investment (FDI) legally and expedite bureaucratic procedures. It also has a dispute resolution procedure to handle disagreements pertaining to investments.
In response to inquiries concerning reports indicating that SIFC would attract as much as $60 billion in investments to Pakistan in the upcoming five years, Prime Minister Kakar said that this figure was reasonable and might even be higher.
