Saudi Arabia Eyes Stake in Reko Diq

Speculations are rife about Saudi Arabia’s interest in snagging a significant stake in Reko Diq, a mineral-rich project enticing international investors. The potential deal involves the Saudi company gradually boosting its involvement in Reko Diq, a venture where the Pakistani government holds a 25% stake, with the remaining 25% belonging to the Balochistan province.

Early Talks Amidst Uncertainties

Sources closely tied to the matter have disclosed that discussions are merely at a nascent stage and could either crumble like a house of cards or witness a temporary hiatus. The backdrop paints a picture teetering on uncertainty, highlighting the fragile nature of high-stakes negotiations in the financial arena. Barrick’s CEO, Mark Bristow, has expressed reservations about diluting the company’s existing stake in the venture while subtly hinting at a potential buyout scenario involving Saudi Arabia’s sovereign wealth fund.

Rich Prospects in Balochistan

Reko Diq, nestled in the Balochistan region – flanked by Afghanistan and Iran, promises abundant copper and gold resources waiting to be brought to the surface. Barrick, a leading player in the gold industry, views this untapped reserve as one of the globe’s premier copper-gold prospects. The project’s potential is underscored by estimates pointing towards an annual copper output of 200,000 tonnes alongside 250,000 ounces of gold for a staggering half-century or more. The anticipated production commencement in 2028 only adds to the heightened expectations surrounding the venture’s promise.

Saudi Arabia’s Diversification Endeavors

Saudi Arabia’s foray into Reko Diq forms part of the country’s broader strategy to diversify its economic pillars beyond the confines of oil dependency. By leveraging its extensive reserves of various minerals like gold, copper, and bauxite, the Middle-Eastern powerhouse aims to fortify its financial standing in the global investment landscape. Noteworthy is the collaborative effort spearheaded by Manara, a joint venture uniting Ma’aden – a state-backed miner, with the Public Investment Fund. The synergy culminated in a pivotal deal with Vale last year, solidifying Saudi Arabia’s footprint in the international mineral market.

(Credit: Information sourced from Bloomberg and Reuters)