Federal cabinet approves sale of 15% Reko Diq shares to Saudi Arabia

The federal cabinet has approved the sale of 15% of Pakistan’s Reko Diq copper and gold mine shares as part of a significant business deal.

Reko Diq, located in Balochistan, is one of the largest untapped copper and gold deposits in the world. It is primarily operated by Canada’s Barrick Gold, which owns a 50% stake, with the remaining 50% split between the federal and Balochistan governments.

Reports indicate the cabinet has authorized the sale of these shares to Saudi Arabia for $540 million, with payment divided into two installments. In the first phase, 10% of the shares will be transferred to Saudi Arabia for $330 million, while the remaining 5% will be sold for $210 million.

Additionally, Saudi Arabia’s Fund for Development will contribute $150 million for mineral development in Balochistan. Earlier in September, Saudi Arabia proposed a 15% investment in the Reko Diq project. According to Radio Pakistan, Saudi Arabia also offered grants for road infrastructure development around the site.

The Special Investment Facilitation Council (SIFC) approved the investment structure, leaving the final decision to the Cabinet Committee on Intergovernmental Transactions. The SIFC was established in June 2023 to help revive Pakistan’s struggling economy.