A high-level Pakistani delegation participates in the Future Minerals Forum (FMF) in Riyadh, which runs from January 9 to 11. The FMF is a key platform for promoting mineral value chains across Africa, Western and Central Asia.
Pakistani energy and mineral organizations, including the Petroleum Division, Special Investment Facilitation Council (SIFC), Pakistan Mineral Development Corporation (PMDC), Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Geological Survey of Pakistan (GSP) are also part the delegation.
The Pakistani delegation aims to advance discussions with Saudi Arabia on potential investments in the Reko Diq copper and gold project. Additionally, the possibility of Saudi Arabia building a refinery in Pakistan is a key agenda item. Pakistan has reportedly agreed to Saudi Aramco’s request to involve Sinopec, a Chinese company, in the refinery project.
Strategic Investment Plans and Project Shares
Saudi Arabia is targeting an investment of SR63.7 billion ($170 billion) in its mining industry by 2030. The initiative aims to harness the country’s rich mineral resources, estimated to be worth over SR4.88 trillion ($1.3 trillion).
In 2022, the Geological Survey of Pakistan (GSP) and Saudi-owned Ma’aden mining company agreed to survey to explore mineral potentials.
Discussions during the FMF will also cover Saudi Arabia’s interest in installing a state-of-the-art deep conversion refinery in Pakistan. The SIFC is eager to sell government shares to Saudi investors, aiming to expand Saudi investment footprints in Pakistan.
The Reko Diq project, a significant focus of these discussions, has undergone a share restructuring. Currently, 50% of the shares are owned by the Canadian company Barrick Gold Corporation, with the remaining shares split between Pakistani government entities and the province of Balochistan.
Energy Minister Ali and other top officials have been instrumental in fulfilling SIFC directives to facilitate agreements with K Electric and resolve issues related to its main owner, Aljomaih Power Limited Company of Saudi Arabia.
The facilitation is part of a broader condition set by Saudi Arabia for increasing investments in Pakistan across various sectors, including mining, refinery, agriculture, etc. Most K Electric shares are owned by KES Power, comprising a consortium of investors, including Aljomaih Power Limited of Saudi Arabia.