Federal cabinet approves the sale of a 15% stake in the Reko Diq mine to Saudi Arabia. The Reko Diq Mine in Pakistan is one of the largest copper and gold deposits globally, located in the Chagai District of Balochistan.
The stakes have been sold to Saudi Arabia under an intergovernmental transaction agreement. The deal is valued at $ 540 million and will see the transfer in two installments. Saudi Arabia will pay $330 million in the first phase for a 10% share. An additional $210 million will be paid for 5% shares in the second phase.
Saudi Fund for Development has pledged an extra $150 million to bolster the mining sector in Balochistan. Saudi Arabia has also expressed interest in exploring mineral resources and investing further in Chagai, a mineral-rich region.
Currently, 50% of shares in the Reko Diq Gold mine are jointly shared by Pakistan’s federal government and Balochistan’s provincial government. And the rest of the 50% is owned by international firms. The shareholding structure is in line with Barrick’s policy of benefit-sharing partnerships with its host countries. Pertinent to mention that the Reki Diq $9 billion deal is the biggest-ever investment in Pakistan’s history. Pakistan’s government has granted a 15-year tax exemption to the project.
Read more: First production from Reko Diq mine expected in 2028
The giant copper-gold mine Reko Diq in Balochistan is expected to see its first production in 2028. The feasibility study will be finalized by the end of 2024.
According to the details, the President and Chief Executive Mark Bristow of Barrick Gold Corporation met with Balochistan Chief Minister Abdul Quddus Bizenjo and other provincial leaders to brief them on the extensive social and economic development opportunities that would be generated by the mine, which is expected to have a life of at least 40 years.
Regarding the construction phase, the CEO explained that it would take around three years starting in 2025 and they expected to make the first production in 2028.