ISLAMABAD: The federal cabinet has approved the sale of a 15% stake in the Reko Diq copper-gold project to Saudi Arabia for $540 million (approximately Rs150.27 billion) under the Inter-Governmental Commercial Transactions Act. This landmark deal underscores deepening economic ties between Pakistan and the Kingdom.
The Kingdom of Saudi Arabia (KSA) will acquire the stake in two phases. In the first phase, a 10% stake will be purchased for $330 million, with the remaining 5% acquired in the second phase for $210 million. Following the cabinet’s approval, formalities for the transaction are being expedited, and the first tranche is expected soon.
In addition to the purchase, the Saudi Fund for Development has pledged $150 million for mineral resource development in Balochistan. Saudi Arabia has also expressed interest in expanding its investments in mineral exploration, particularly in the Chagai region, home to the Reko Diq project.
Reko Diq, one of the world’s largest undeveloped copper-gold mines, boasts reserves of 5.9 billion tonnes of ore with 0.41% copper and 41.5 million ounces of gold. The project is expected to have a mining lifespan of at least 40 years. Ownership is split between Barrick Gold (50%) and the federal and Balochistan governments (50%), ensuring regional benefits.
The project is anticipated to unlock substantial economic potential, generating jobs, enhancing infrastructure, and providing steady revenue for federal and provincial governments. Saudi Arabia’s involvement highlights growing international confidence in Pakistan’s mining sector and aligns with its strategic goal to diversify investments and foster global partnerships.
Story by Khalid Mustafa
