Saudi Arabia is poised to inject one billion US dollars into the Reko Diq gold and copper project, according to sources within the finance ministry. The investment will involve the sale of shares from Oil and Gas Development Company Limited (OGDCL) and Pakistan Petroleum Limited (PPL) to Saudi Arabia, with preparations underway for the investment next month.
To oversee the Saudi investment, Prime Minister Shehbaz Sharif will form a committee comprising officials from the finance ministry, OGDCL, PPL, and the energy ministry. This committee will be tasked with visiting Saudi Arabia for final negotiations once a summary is dispatched to the Ministry of Finance and the energy ministry for the formation of the prime minister’s committee.
The agreement between Pakistan and the Kingdom of Saudi Arabia will be an inter-governmental one, solidifying Saudi Arabia’s investment in the Reko Diq project. Reko Diq is believed to harbor one of the largest untapped reserves of copper and gold globally, making it a significant venture. Mark Bristow, Chief Executive of Barrick, which aims to commence mining in 2028 pending ongoing feasibility studies, remarked on the project’s significance, highlighting its status as a major copper mine.
Last December, Pakistan and Barrick Gold Corporation signed an $8 billion landmark agreement on the Reko Diq project, marking a crucial step forward. After being on hold since 2011, the project is being revived, with Barrick Gold Corporation providing an update to Prime Minister Shehbaz Sharif during a recent meeting. It was revealed that the feasibility study is set to conclude by the end of 2024, with a commitment to prioritize local and Balochistan-domiciled individuals for employment opportunities within the project.
