Saudi Arabia to invest $1.7 billion in Reko Diq

Saudi Arabia has proposed a 15% investment in Pakistan’s highly anticipated Reko Diq mining project, along with grants to develop road infrastructure around the site. The Special Investment Facilitation Council (SIFC) has approved the offer’s structure, and the final decision now rests with the Cabinet Committee on Intergovernmental Transactions.

Pakistan is eager to attract Saudi investments of up to $5 billion in the mining and agriculture sectors by June next year. The country’s Finance Minister, Muhammad Aurangzeb, has highlighted Saudi Arabia’s growing interest in various sectors, including metals and mining. “A few of those projects are now pretty close, so I do think we should hear some announcements coming through,” Aurangzeb said.

Recently, a Saudi delegation visited Pakistan to explore investment opportunities in solar, mining, hydropower, and technology. Saudi Foreign Minister Prince Faisal bin Farhan emphasized the Gulf kingdom’s intention to proceed with these ventures.

The Reko Diq project, located in Balochistan’s Chagai district, is expected to commence production by 2028. The project is a joint venture between Barrick Gold Corporation (50% stake), the Pakistani federal government (25%), and the Balochistan provincial government (25%).

Saudi Arabia has been negotiating to acquire part of the Pakistani government’s share in the project. In a previous interview, Barrick CEO Mark Bristow reaffirmed that the company would support any decisions made by Pakistan with Saudi Arabia but ruled out any dilution of Barrick’s equity in the venture.