Pakistan and Saudi Arabia are in the “advanced” stages of negotiations regarding a significant investment in Pakistan’s copper and gold mines, according to Petroleum Minister Musadik Malik.
The talks focus on Reko Diq, one of the world’s largest underdeveloped copper and gold mines, located in Balochistan province. The mine is jointly owned by Canadian firm Barrick Gold Corp. and Pakistan. Last year, Saudi Arabia offered to purchase a 15 per cent stake in the project.
Speaking to the media at the Future Minerals Forum in Riyadh on Tuesday, he revealed that both countries have made considerable progress in their discussions.
“Both sides have come up with valuation frameworks, the valuation ranges are in place, and both teams are now empowered to negotiate,” he said. However, he refrained from disclosing further details, citing non-disclosure agreements.
Malik expressed confidence that significant announcements regarding the investment would be made soon. “We are very hopeful about that,” he added, referring to the mining assets, particularly copper and gold, which are at the heart of the talks.
According to Reuters, the Saudi Arabian mining company Manara Minerals is expected to invest in Reko Diq within the next two quarters. Manara is a joint venture between Saudi state-controlled miner Ma’aden and the $925 billion Public Investment Fund (PIF), established as part of Saudi Arabia’s efforts to diversify its economy.
“We’re very hopeful that this year, we will make some big announcements, both in the way of Reko Diq, but hopefully also in the mines around it,” Malik said. When asked whether Manara would be involved, he confirmed, “Why not, of course.”
Manara’s executives visited Pakistan in May last year to discuss purchasing a stake in the Reko Diq mine. While they have not yet responded to comment requests, the discussions signal a significant shift towards diversifying investments in Pakistan’s mining sector.
He also indicated that Pakistan is in talks with other Gulf countries about similar opportunities. Pakistan’s efforts to attract foreign investment to its mining sector come at a time when the country is seeking to capitalise on its vast natural resources.
