In a significant economic development, Saudi Arabia is showing strong interest in investing a whopping $1 billion into Pakistan’s untapped copper and gold project, Reko Diq.
Reko Diq is situated in the mineral-rich region of Balochistan and is renowned for its vast and valuable mineral resources. Estimates suggest that this project could potentially house some of the world’s largest untapped copper and gold deposits.
The recent interest shown by Riyadh in investing $1 billion in the Reko Diq gold and copper project marks a positive step in strengthening economic ties between Saudi Arabia and Pakistan.
Sources with knowledge of the situation have indicated that Pakistan is planning to sell a considerable stake in the Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL) to Saudi Arabia. This move is aimed at facilitating and boosting the Saudi investment in the Reko Diq project.
To manage and oversee this significant investment, the Prime Minister of Pakistan will establish a committee. This committee will consist of officials from various key departments including the finance ministry, OGDCL, PPL, and the energy ministry.
The committee is slated to visit Saudi Arabia for final negotiations. Following these negotiations, an inter-governmental agreement for the investment in the Reko Diq project will be signed between Pakistan and Saudi Arabia.
Reko Diq is globally recognized as one of the largest untapped reserves of copper and gold. In a landmark agreement last December, Pakistan and Barrick Gold Corporation inked an $8 billion deal for the Reko Diq project.
This project, which has been inactive since 2011, is now set to be restarted. According to Barrick’s feasibility study, mining operations at Reko Diq are projected to commence in 2028.
During discussions with Prime Minister Shehbaz Sharif, the delegation from Barrick Gold Corporation shared that the feasibility study is on track to be completed by the end of 2024.
They also emphasized their commitment to prioritize the employment of local and Balochistan-based individuals for the project.
This potential investment by Saudi Arabia in the Reko Diq project is not only expected to significantly boost Pakistan’s economy but also strengthen the bilateral relations between the two nations.
