Manara Minerals, Saudi Arabia’s investment mining fund, is set to purchase a stake in Pakistan’s Reko Diq copper and gold project for approximately $500 million to $1 billion, according to a report by the Financial Times on Tuesday.
The mining fund plans to acquire between 10% and 20% of the Reko Diq project from Pakistan’s government, which holds a 25% stake in the mine. The project is being developed by Barrick Gold, with a joint venture between Barrick and Pakistan overseeing operations, the report stated, citing sources familiar with the discussions.
Manara Minerals is a joint venture between Saudi state-controlled Ma’aden and the $925 billion Public Investment Fund (PIF). This initiative is part of Saudi Arabia’s strategy to diversify its economy away from oil, which includes investments in global mining assets.
In May 2024, executives from Manara visited Pakistan to discuss acquiring a stake in Reko Diq, one of the largest untapped copper and gold reserves globally. Barrick Gold, which co-owns the project with Pakistan, has emphasized the significance of the site, which is located in Balochistan near the borders with Afghanistan and Iran.
Saudi Arabia’s Mining Minister Bandar Alkhorayef confirmed the development last week, stating that the fund was actively considering an investment in the project. He also noted that the Saudi Development Fund might contribute over $100 million to enhance Pakistan’s mining infrastructure. “Without proper infrastructure, the economics of the deal are not attractive, so we are exploring ways to finance it through the Saudi Development Fund,” Alkhorayef explained during the Future Minerals Forum in Riyadh.
According to the Financial Times report, Manara Minerals intends to purchase a 10-20% stake in the $9 billion project and secure an offtake agreement for the future output of the mine.
Barrick Gold owns a 50% stake in Reko Diq, while the federal and Balochistan governments jointly hold the remaining 50%. The project is expected to provide substantial economic benefits to the region, with Barrick’s CEO Mark Bristow noting that it would be a game-changer for Pakistan’s economy.
The project is nearing a significant milestone, following a high-level Pakistani delegation’s visit to Riyadh last week. Pakistan’s Petroleum Minister Musadik Malik expressed optimism, stating that a deal could be finalized within the next six months.
Saudi Arabia has been one of Pakistan’s largest external creditors, providing loan rollovers, central bank deposits, and oil facilities to help manage the country’s $9.2 billion debt.
Once completed, the Reko Diq project is expected to produce 400,000 tonnes of copper and 500,000 ounces of gold annually. The initial phase of the mine will require an investment of $4.5 billion, with funding split between Barrick, Pakistan, and a consortium of debt providers, including the World Bank and the Asian Development Bank. The second phase, projected to cost an additional $4.5 billion, will be funded through revenues generated during the first phase.
The site is already undergoing infrastructure development, including an airstrip and accommodations for 1,000 workers, in preparation for the start of mine construction.
