Pakistan and Saudi Arabia are progressing towards finalizing the terms of the multibillion-dollar Reko Diq project, a key mining initiative that promises significant economic benefits for both nations. Officials indicated on Saturday that discussions are in advanced stages, with both sides ironing out critical details.
One major hurdle in the negotiations was Saudi Arabia’s request to maintain a bank account outside Pakistan for foreign exchange transactions related to machinery procurement. This issue has been resolved, with both countries agreeing that the foreign exchange will be brought into Pakistan.
In the first stage of the project, Saudi Arabia will acquire a 10% stake, with the potential for future increases. The revised valuation of the project’s shares has been completed, yielding improved figures that have been shared with Saudi stakeholders.
An official involved in the discussions stated, “Negotiations have reached an advanced stage, and a broader agreement has been struck. Finalization of the deal is expected soon, although an exact timeline remains uncertain.”
Saudi Arabia’s interest in Reko Diq underscores its broader commitment to investing in Pakistan’s mining sector. Saudi Mining Minister Bandar Alkhorayef recently confirmed that Manara Minerals, a Saudi mining company, is considering significant investments in the project. He also revealed that the Saudi Development Fund could contribute over $100 million to improve mining infrastructure in Pakistan.
“Part of what we are looking at is how we can help Pakistan with the necessary infrastructure to make the project economically viable. Without infrastructure, the deal would not be attractive,” Minister Alkhorayef said during the Future Minerals Forum in Riyadh.
The Reko Diq mine, located in Balochistan, is one of the world’s largest undeveloped copper and gold deposits. Its development is expected to bolster Pakistan’s economy significantly, bringing foreign direct investment and creating thousands of jobs.
This strategic collaboration marks a significant step in strengthening economic ties between Pakistan and Saudi Arabia, as both nations aim to unlock the full potential of their resource-based industries.
