Pakistan, Saudi Arabia Poised to Reach Deal on Reko Diq Project This Week

Pakistan and Saudi Arabia are expected to make headway on investment in the Reko Diq mine during the three-day Future Minerals Forum (FMF) in Riyadh, reported a national daily. A high-level team from Pakistan, led by interim Energy Minister Muhammad Ali, is attending the mineral forum, a gathering for promoting mineral value chains in Africa, Western Asia, and Central Asia. The Forum is scheduled from January 9 (today) to January 11, 2024. Besides the Forum, the relevant authorities of Saudi Arabia and Pakistan will discuss potential investment in the Reko Diq project during the visit and may reach an agreement on this. The visiting officials are also expected to discuss setting up a deep conversion refinery in Pakistan. The SIFC is eager to sell government shares to Saudi investors to expand the scope of Saudi investment in Pakistan. Saudi investors (KSA) will be recognized as a strategic investment. Under the revised agreement, Barrick Gold Corporation owns 50 percent of the shares, while Antofagasta of Chile has withdrawn from the project in exchange for $900 million deposited by Oil & Gas Development Company Limited, Pakistan Petroleum Limited, and Government Holdings Private Limited. These entities control 25 percent of the project, whereas Balochistan owns the same number of shares. 15 percent of shares are completely supported, whereas 10 percent are free-carried.