Saudi Arabia to join Reqo Diq

ISLAMABAD: The civil-military run Special Investment Facilitation Council (SIFC) has approved hiring of consultants to reduce shareholdings of Pakistan and Canada’s Barrick Gold equally in favour of Saudi Arabia in the Reko Diq gold and copper mine project.

The formal decision to bring in another country in the Reko Diq project was taken this week by the apex committee of the SIFC, highly placed sources told The Express Tribune.

Prime Minister Shehbaz Sharif had chaired the apex committee meeting –- a forum which was also attended by Chief of the Army Staff General Asim Munir.

Last month, the SIFC in principle approved 28 projects worth billions of dollars that would be offered to Gulf countries for investment, including the construction of the Diamer-Bhasha dam and mining operations at Reko Diq in Balochistan’s Chagai district.

The government officials said that in his last meeting as the SIFC chairman, the prime minister mandated the Ministry of Energy to hire financial advisers to offer shares in the Reko Diq mining project to prospective investors.

According to the decision, the reduction of shareholdings should be done in a manner that the shares of Pakistan and Barrick Gold are reduced equally.

Barrick Gold owns a 50 per cent stake in Reko Diq mine, with the remaining 50 per cent owned by the governments of Pakistan and Balochistan.

The prime minister also decided that the SIFC would work with the logo of Rising Pakistan – a title that reflects the aspirations of the civil and the military leadership to use the forum to get rid of the country’s dependence on external loans.

Pakistan has set up the SIFC to foster synergy between the federal and provincial governments in an effort to facilitate timely decision-making; avoiding duplication of efforts; enhancing investor confidence, and ensuring swift project implementation.

The apex committee of the SIFC further decided that the Ministry of Energy would also recommend a negotiation committee to initiate talks with Saudi Arabia for making it a partner in the project.

Similarly, the Ministry of Energy would also ensure that the three state-owned entities that hold shares in the project on behalf of the federal government would start divesting their shares in the Reko Diq project.

The Government Holding Private Limited, Oil and Gas Development Company and Pakistan Petroleum Limited hold shares in the mining project on behalf of the federal government.

The SIFC has given a December 25, 2023 deadline for concluding the transaction, including the signing of bidding documents, according to the Ministry of Energy officials.