Saudi Arabia has expressed interest in acquiring government holdings in Pakistan’s Reko Diq gold and copper mine, according to a South Asian official, who added that an international adviser was close to completion of a valuation.
The mine is 50% held by Barrick Gold Corp, with the remaining 50% owned by the governments of Pakistan and the province of Balochistan. According to Barrick, the mine is one of the world’s largest undeveloped copper-gold areas.
The government hopes to finish evaluating everything before December 25, according to Jahanzeb Khan, who works with the Prime Minister’s Special Investment Facilitation Council.
Before, Pakistan mentioned that Barrick planned to invest $10 billion in the project. In August, Barrick mentioned being open to having Saudi Arabia join as a partner.
After finishing the evaluation, Islamabad will talk to Riyadh and figure out what they expect. The Saudi government hasn’t responded yet.
Pakistan is facing economic difficulties and barely avoided a financial crisis earlier this year with a last-minute $3 billion rescue from the International Monetary Fund (IMF).
But for the deal to work, Pakistan needs more foreign investment to support its low foreign exchange reserves. They’re looking to their old friends in the Middle East, especially Saudi Arabia, for help.
Khan mentioned that Pakistan wants Saudi Arabia to be involved, but they’re not in a hurry. They don’t want to sell assets in a rush and will protect their national interests.
