The Pakistan government has approved a transaction under the Inter-Governmental Commercial Transactions Act, selling a 15% stake in the Reko Diq project to Saudi Arabia for $540 million, approximately Rs150.27 billion.
A senior official from the Petroleum Division confirmed that the federal cabinet has approved the sale. Saudi Arabia will pay $330 million initially for a 10% stake and $210 million for the remaining 5%.
With the cabinet’s approval, all related formalities will be accelerated, and the first payment of $330 million is expected soon after the initial transfer. This agreement initiates a new phase of cooperation between Pakistan and Saudi Arabia, which is expected to yield substantial mutual benefits.
Federal cabinet 🇵🇰🇵🇰 has approved 15% stake sale of Reko Diq to Saudi Arabia.
Valued at $540Mn alongwith $150Mn investment in Balochistan infrastructure ✅✅
Probably Saudi Arabia's first big ticket equity investment in Pakistan, will open doors for development of mining sector…
— Abdul Rehman Najam (@AbdulRehman0292) December 30, 2024In addition to acquiring shares, the Saudi Fund for Development has committed $150 million to support mineral resource development in Balochistan. Saudi Arabia is also interested in further mineral exploration in Chagai, where Reko Diq is situated.
Reko Diq is one of the largest undeveloped copper-gold mines globally. Its estimated reserves are 5.9 billion tonnes of ore grading 0.41% copper and 41.5 million ounces of gold. The planned mining operation near Reko Diq town in Chagai is projected to last at least 40 years.
Pakistan Oil and Gas Exploration (E&Ps): Federal Cabinet Approved the Sales of 15% Stake in Reko Diq for US$540mn – News Report
(Dec 31, 2024) pic.twitter.com/kY8fTzp1YZ
— Topline Securities (@toplinesec) December 31, 2024Mine ownership is split, with Barrick Gold holding a 50% stake and the federal and Balochistan governments jointly owning the other 50%, ensuring significant regional benefits.
Reko Diq’s development is anticipated to enhance Pakistan’s economic landscape greatly, boost the mining sector, create jobs, improve infrastructure, and generate sustained revenue for both federal and provincial governments.
This partnership with Saudi Arabia demonstrates growing global confidence in Pakistan’s mining capabilities and aligns with Saudi Arabia’s investment diversification strategy and collaboration with strategic partners.
