Discussions regarding a potential investment deal between Pakistan and Saudi Arabia in the Reko Diq copper and gold project are set to advance during the three-day Future Minerals Forum (FMF) in Riyadh.
A high-ranking Pakistani delegation, led by caretaker Energy Minister Muhammad Ali, is participating in the FMF, a platform aimed at promoting mineral value chains in Africa, Western and Central Asia. The event, taking place from January 9 to 11, is expected to facilitate talks on Saudi Arabia’s interest in investing in the Reko Diq project, a significant copper and gold venture in Pakistan.
The Pakistani delegation includes representatives from the petroleum division, the Special Investment Facilitation Council (SIFC), Pakistan Mineral Development Corporation (PMDC), Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and the Geological Survey of Pakistan (GSP). Discussions may also encompass Saudi Arabia’s potential involvement in constructing a refinery in Pakistan.
A source mentioned, “Pakistan authorities may also take up this issue of paramount importance with Aramco officials during the visit.” Aramco is interested in engaging Sinopec, a Chinese company, in the refinery project, and Pakistan has expressed its agreement to this collaboration.
Saudi Arabia is aiming to attract SR63.7 billion ($170 billion) in mining industry investments by 2030, capitalizing on its substantial mineral resources valued at an estimated SR4.88 trillion ($1.3 trillion).
In 2022, the Geological Survey of Pakistan (GSP) and Ma’aden, a Saudi-owned mining company, established an understanding for a survey to identify mineral resources.
Apart from forum participation, the Pakistani and Saudi authorities are anticipated to engage in detailed discussions on potential investments in the Reko Diq project. Additionally, talks may include Saudi Arabia’s interest in establishing a state-of-the-art deep conversion refinery in Pakistan.
The SIFC is eager to sell government shares to Saudi investors to expand Saudi investment in various sectors in Pakistan. Officials noted that investments from Saudi Arabia would be treated as strategic, emphasizing the significance of fostering economic collaboration between the two nations.
Under the revised agreement for the Reko Diq project, 50% of shares are held by the Canadian company Barrick Gold Corporation. The remaining shares are distributed among entities of the federal government, including OGDCL, PPL, and Government Holdings Private Limited. The Energy Minister Ali and other officials have played a key role in facilitating agreements to enhance Saudi investments in Pakistan, as part of broader economic cooperation.
