Islamabad (TDI): The federal cabinet on Tuesday approved the sale of a 15% stake in the Reko Diq mining project to Saudi Arabia, media reports said.
The approval is part of the as part of an intergovernmental agreement following a series of engagements between the two sides.
The $540 million deal would be implemented in two phases. In the first phase, Saudi Arabia would invest $330 million for a 10% share. The kingdom will acquire another five percent share for another $210 million in the next phase.
Read More: Saudi Firm to Acquire Reko Diq Stake
The federal Balochistan governments own 50 percent stakes in Reko Diq, located in Chagai. The other half is owned by international company Barrick Gold.
The project is said to be one of the largest untapped copper and gold deposits in the world, offering significant economic potential for Pakistan.
Read More: Saudi Arabia Offers 15% Equity Investment in Reko Diq
Other than its investment in Reko Diq, the Saudi Fund for Development has pledged an additional $150 million to improve the mining sector in Balochistan.
The Saudi government has also expressed interest in further exploring mineral resources and investing in the Chagai region, which is known for its rich mineral deposits.
