The federal cabinet has approved the sale of a 15% stake in the Reko Diq Mine to Saudi Arabia for $540 million under the Inter-Governmental Commercial Transactions Act. The transaction will occur in two phases. In the first phase, Saudi Arabia will pay $330 million, acquiring a 10% stake. In the second phase, $210 million will be paid for the remaining 5% stake.
Additionally, the Saudi Fund for Development will provide $150 million to support mineral development in Balochistan.
Reko Diq Mine is renowned for its vast gold and copper reserves, believed to contain the fifth-largest gold deposit globally. It holds an estimated 5.9 billion tonnes of ore grading 0.41% copper and gold reserves of 41.5 million ounces, with a projected mining lifespan of at least 40 years.
Currently, Barrick Gold owns a 50% stake in the mine, while the remaining 50% is jointly owned by the federal and Balochistan governments, ensuring significant regional benefits.
The development of Reko Diq is expected to unlock substantial economic opportunities for Pakistan. The project will strengthen the mining sector, generate employment, enhance infrastructure, and provide long-term revenue for federal and provincial governments.
Saudi Arabia has also committed to investing in mineral exploration in Chagai as part of its broader strategy to diversify investments and collaborate with strategic partners.
