S Arabia offers 15pc investment in Reko Diq: report

ISLAMABAD: Saudi Arabia has offered 15 percent investment in the Reko Diq copper and gold mine project, according to Arab media, quoting Pakistani state-owned media on Saturday.

Reko Diq is considered one of the world’s largest undeveloped copper and gold resources, primarily operated by Canada’s Barrick Gold, which holds a 50 percent stake.

The remaining stake is owned by three federal state-owned enterprises and the Balochistan government, though Pakistan has invited Saudi Arabia to invest in the project.

“Saudi Arabia has offered 15 percent investment in the Reko Diq mining project,” Radio Pakistan reported. “The Kingdom has also offered grants to build road infrastructure around the Reko Diq project.”

The report said, “The Special Investment Facilitation Council (SIFC) has approved the structure of the offer, but the final decision has been left to the Cabinet Committee on Intergovernmental Transactions.” Pakistan had established the SIFC, a civil-military hybrid body, in June last year to revive the national economy, which has been severely impacted by low foreign exchange reserves, currency depreciation and record inflation.

Barrick Gold’s top official, Mark Bristow, also acknowledged Saudi Arabia’s interest in the project, saying his company would not dilute its equity.

However, he said that Barrick Gold would not oppose any decision by the Pakistani government to sell part of its stake to Saudi Arabia. According to Radio Pakistan, the government expects up to $5 billion in investment in the mining and agriculture sectors by June next year.