The Pakistani government has approved the sale of a 15% stake in Reko Diq, gold and copper reserves, to the Kingdom of Saudi Arabia.
According to Geo News, Pakistan will sell a $540 million (approximately Rs150.27 billion) stake in the Reko Diq project to Saudi Arabia as part of the Inter-Governmental Commercial Transactions Act.
A senior Petroleum Division official told The News, “The federal cabinet has given a go-ahead to the much-awaited sale of a 15% stake of the federal government in the Reko Diq project. The KSA will make payment in two installments.”
“In the first phase, the KSA will acquire a 10% stake in the project, for which $330 million will be transferred to Pakistan. The remaining 5% stake will be purchased in the second phase for $210 million. With the federal cabinet’s approval, all necessary formalities for the transaction will be expedited, and the first tranche of $330 million is anticipated shortly after the transfer of the initial 10% stake,” he explained.
The official asserted that the deal will mark a new era of collaboration between Pakistan and Saudi Arabia, “with both countries poised to reap significant benefits from this partnership.”
Moreover, the Saudi Fund and Development has also promised to provide $150 million to support the development of natural reserves in Balochistan.
It is worth noting that the Reko Diq project is among the world’s largest undeveloped copper-gold mines. It is a planned mining project located near Reko Diq town of Chagai.
It is estimated that the mines have 5.9 billion tonnes of ore grading 0.41% copper and 41.5 million ounces of gold reserves.
