SAUDI ARABIA TO ACQUIRE STAKE IN COPPER, GOLD MINING PROJECT IN PAKISTAN

Saudi Investment Minister Khalid A. Al-Falih.

Fri 11 October 2024:

Saudi Arabia is set to purchase a minority stake in the Reko Diq copper and gold mining project in Pakistan, according to Gulf Online.

Saudi Investment Minister Khalid Al-Falih announced at an economic conference in Islamabad yesterday that Saudi’s Manara Minerals Investment Company will acquire a stake in the project, which is controlled by Barrick Gold, as reported by Bloomberg.

Al-Falih further explained that the Saudi company, a joint venture between the Saudi Arabian Mining Company (Ma’aden) and the Saudi Public Investment Fund (PIF), is expected to invest at least $1 billion in the mining project located in the southwestern Pakistani province of Balochistan.

The Reko Diq project, situated near the borders of Afghanistan and Iran, is scheduled to begin production in 2028. Barrick owns 50 per cent of the project, while the Pakistani federal government holds a 25 per cent stake, and the remaining share is owned by the Balochistan provincial government. Saudi is set to buy part of the government stake in the project.

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Copper and gold mining in Pakistan holds significant economic potential, with large reserves found in the country’s mineral-rich Balochistan province. One of the most prominent sites is the Reko Diq mine, one of the world’s largest untapped deposits of copper and gold. It is estimated to contain over 5.9 billion tons of ore, with 41.5 million ounces of gold and 10.5 million tons of copper, making it a highly valuable resource for Pakistan’s economy.

Despite its potential, mining in Pakistan faces challenges such as political instability, security concerns, and environmental risks. Balochistan, where the largest reserves are located, has been the site of ongoing insurgency and social unrest, which complicates the safe and efficient extraction of resources. Additionally, there are concerns about ensuring that local communities benefit from mining profits, with calls for sustainable development and environmental safeguards to protect the region’s natural resources.

If managed effectively, Pakistan’s copper and gold mining could become a key driver of economic growth and development.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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