Islamabad, 27 August 2024 (TDI): Saudi Arabia has made an offer to buy 15 percent stakes in the Reko Diq mining project and would also give a substantial grant to build infrastructure around the mining area in a development that will mark the first investment under the umbrella of the Special Investment Facilitation Council (SIFC).
The total offer involves both cash for the purchase of 15 percent shares and grant to build infrastructure around the mining area, according to media reports.
In response to the Saudi offer, Islamabad has decided to constitute a negotiation committee that will review the offer and recommend the final negotiated price to the federal cabinet for approval.
Saudi Arabia’s Public Investment Fund (PIF) has offered to acquire 15 percent shares through Manara Minerals. The federal government currently holds 25 percent shares in the Reko Diq Mining project and out of its share it would sell 15 percent stakes to Saudi Arabia.
If the agreement materialises, it would cement Pakistan-Saudi Arabia economic ties and create employment opportunities for the people of the region. Pakistan was also in the process of securing rollover of a 5 billion dollars Saudi cash deposit and has also requested a 1.2 billion dollars new oil financing facility.
In addition to acquiring 15 percent shares, Riyadh has also offered to give grant for the construction of road infrastructure around the Reko Diq mining project. The government wants to build the Mashkhel-Panjoor road for smooth movement around the mining area.
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The Reko Diq project is owned 50 percent by Barrick Gold, 25 percent by Balochistan and 25 percent by three federal government entities.
Barrick Gold is in the process of updating the feasibility studies of the project. The feasibility study would be completed by December and the first production is likely by 2028.
