ISLAMABAD: Pakistan and the Kingdom of Saudi Arabia (KSA) are still working to finalize key details regarding the 15% stake in the Reko Diq copper and gold project in Balochistan, sources told Business Recorder.
The Reko Diq Mine is currently 50% owned by Barrick Gold, while the Government of Pakistan holds 25% through state-owned enterprises (GHCL, OGDCL, and PPL). The Government of Balochistan retains 15% on a fully funded basis and 10% on a free-carried basis.
Progress and Key Challenges
Minister for Petroleum and Natural Resources, Dr. Musadik Masood Malik, recently visited Riyadh to present investment opportunities in Pakistan’s natural resources sector, offering incentives for potential investors, particularly in Balochistan.
Saudi officials are optimistic that once the Reko Diq feasibility study is completed by the end of this month, a decision on the next steps will be made, according to a recent communication from Pakistan’s ambassador to Saudi Arabia.
In discussions at the Prime Minister’s Office, it was noted that the Financial Close (FC) for the project is scheduled for June 2025. The Ministry of Finance (MoF) indicated that a third-party guarantee is expected to be approved by the Asian Development Bank (ADB) by May 2025. Officials emphasized that securing this guarantee is crucial for ensuring timely financial closure and fulfilling equity funding obligations for the Government of Balochistan (GoB) and Balochistan Mineral Resources Limited (BMRL).
Saudi Investment and Regulatory Developments
Saudi Arabia’s Manara Minerals Investment Co., backed by the Saudi Sovereign Fund (SSF), has expressed interest in acquiring $1 billion worth of shares in Reko Diq, currently controlled by Barrick Gold Corporation. A Saudi delegation is expected to visit Pakistan next month to further discussions.
The Petroleum Division is also leading efforts to restructure the Geological Survey of Pakistan (GSP) based on audit recommendations. Additionally, it is working with the Ministry of Inter-Provincial Coordination (IPC) to establish a harmonized minerals regulatory framework across provinces. Progress on these initiatives has been shared with the Executive Committee of the Special Investment Facilitation Council (SIFC), which oversees major investment decisions.
Government’s Stance and Future Outlook
Federal Minister for Petroleum Dr. Musadik Malik has stated that negotiations with Saudi Arabia are progressing positively and are expected to be finalized soon. A price negotiation committee is ensuring that the deal proceeds in a timely manner.
Meanwhile, the Petroleum Division’s Mineral Cell is actively working on a comprehensive Mineral Policy, in collaboration with the SIFC and other stakeholders. The division has also completed an international benchmarking review of mining laws and regulations, and updated key legal frameworks, including the Mines and Oil Fields and Mineral Development (Government Control) Act, 1948.
With Saudi Arabia’s increasing interest and ongoing policy reforms, Pakistan aims to attract significant foreign investment into its mining sector, unlocking the full potential of its vast natural resources.
Story by Mushtaq Ghumman
