ISLAMABAD: The Federal Cabinet has approved the sale of 15 percent stake in Reko Diq Mine worth $540 million to Saudi Arabia (KSA) under the Intergovernmental Business Transactions Act.
Saudi Arabia will pay $540 million (approximately Rs 150.27 billion) to Pakistan in two installments. It will pay $330 million as a first installment and 10 percent of the shares will be transferred. In the second phase, $210 million will be paid for the transfer of the remaining five percent of the shares.
The Saudi Development Fund will also provide $150 million for mineral development in Baluchistan.
The Reko Diq mines contain huge reserves of gold and copper. It is believed to have the fifth largest gold deposit in the world.
The project is among the world’s largest undeveloped copper-gold mines. It has estimated reserves of 5.9 billion tonnes of ore at 0.41% copper and gold reserves of 41.5 million ounces and a mining life of at least 40 years.
Barrick Gold owns a 50 percent stake in the mine, while the federal government and the government of Balochistan jointly own the remaining 50 percent of the shares, ensuring substantial benefits for the region.
The development of Reko Diq will open up significant economic potential for Pakistan. The successful implementation of the project will not only strengthen the mining sector, but also create employment opportunities, strengthen infrastructure and provide long-term revenue for both the federal and provincial governments.
Saudi Arabia also agreed to invest in Chagai for mineral exploration as part of its “broader strategy to diversify investments and work with strategic partners”.
