Pakistan to sell its stake in Reko Diq to Saudi Public Investment Fund (PIF) by Dec

Interim Prime Minister Anwaarul Haq Kakar is hopeful for to sell Pakistani stake to Saudi Arabia in the Reko Diq gold and copper mining project by December 2023.

The premier said that we are quite excited at the Saudi offer, and we would be very much encouraging their participation, not just in this project but otherwise also.Cash strapped Pakistan is in desperate search of investment opportunities for its debt and current account deficit obligations.

It’s worth noting that Barrick and Saudi Arabia’s state-owned mining company Maaden jointly manage a copper project in Jeddah. The Special Investment Facilitation Council (SIFC) was seeking the Saudi Arab and Pakistani state owned enterprises (OGDCL, PPL , GHPL ) to conslude the deal.

In August 2023, Barrick Gold Corp CEO Mark Bristow said that Barrick won’t be diluting its equity in the project but “will not mind” if Saudi Arabia’s Public Investment Fund (PIF) wants to buy out the equity of the Pakistan government.

Barrick Gold considers Reko Diq one of the world’s largest underdeveloped copper-gold areas.”There is a strong relationship between Saudi and Pakistan and since we control the project we have the first right of refusal,” Bristow added.

Reko Diq is owned 50% by Barrick, 15% by the Province of Balochistan on a fully funded basis, 10% by the Province of Balochistan on a free carried basis, 25% by three federal state-owned enterprises. (Oil and Gas Development Company Limited) (OGDCL), Pakistan Petroleum Limited (PPL) and Government Holdings Private Limited (GHPL).