Cabinet approves 15pc Reko Diq shares to Saudi Arabia
Business
Saudi Arabia will pay Pakistan in two installments - $330 million and $210 million
ISLAMABAD (Dunya News) – The federal cabinet has approved the sale of 15 percent shares in Reko Diq Mine worth $540 million to Saudi Arabia (KSA) under the Inter-Governmental Commercial Transactions Act.
Saudi Arabia will pay Pakistan $540 million (approximately Rs150.27 billion) in two installments. It will pay $330 million as a first instalment and 10 percent shares will be transferred. In the second phase, $210 million will be paid for the transfer of remaining five percent shares.
The Saudi Fund for Development will also provide $150 million for the development of minerals in Balochistan.
The Reko Diq Mines hold vast gold and copper reserves. It is believed to have the world's fifth-largest gold deposit.
The project is among the world’s largest undeveloped copper-gold mines. It has estimated reserves of 5.9 billion tonnes of ore grading 0.41 percent copper and gold reserves amounting to 41.5 million oz, and a mining life of at least 40 years.
The Barrick Gold owns a 50 percent stake in the mine, whereas federal and Balochistan governments collectively own the remaining 50 percent shares, ensuring substantial benefits for the region.
Reko Diq’s development will unlock significant economic potential for Pakistan. The project’s successful implementation will not only boost the mining sector but also create job opportunities, enhance infrastructure, and provide long-term revenue streams for both federal and provincial governments.
Saudi Arabia has also agreed to invest in Chagai for mineral exploration under its “broader strategy to diversify investments and collaborate with strategic partners.”
