International experts have appraised the share value of Pakistan’s Reko Diq gold and copper mine, as the country aims to sell its stake to Saudi Arabia in a significant multibillion-dollar venture.
Dr. Jahanzeb Khan, the prime minister’s adviser on the Special Investment Council, announced that experts have determined the share price to be between $0.87 and $1.
While disclosing this information to the media, Khan emphasized that the government plans to maintain the majority of shares in the Reko Diq project even after selling a portion to Saudi Arabia. This statement follows caretaker Prime Minister Anwaar-ul-Haq Kakar’s recent announcement that the government anticipates finalizing a deal with Saudi Arabia by December to sell shares in the Reko Diq project, renowned as one of the world’s largest gold and copper mines situated in Balochistan.
In an interview, PM Kakar expressed optimism about the ongoing negotiations with Riyadh, emphasizing the government’s excitement about the Saudi offer. He stated that the negotiations involve three parties, and the government encourages Saudi participation in the project.
The Canadian company Barrick Gold Corporation currently owns 50% of the project’s shares, while the Chilean company Antofagasta withdrew from the project, receiving $900 million from governmental entities.
These entities, including Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings Private Limited (GHPL), collectively hold a 25% share in the Reko Diq project. The remaining 25% belongs to Balochistan, with 15% on a fully funded basis and 10% on a free-carried basis. Barrick Gold Corporation views the mine as one of the world’s largest underdeveloped copper-gold areas, capable of producing significant amounts of copper and gold annually for over 50 years.
While Barrick’s CEO Mark Bristow has reiterated that the company’s stake is not for sale, the possibility of Saudi Arabia purchasing the Pakistan government’s equity is being considered. Premier Kakar expressed hope for a deal by December, mentioning the ongoing negotiations and the encouraging prospect of Saudi involvement in the project.
Saudi Arabia’s Public Investment Fund (PIF) has been actively seeking investments in copper projects globally as part of its commitment to funding energy transition initiatives.
