Saudi Arabia likely to invest $1b in Reko Diq Gold Project
Stay tuned with 24 News HD Android App
Kingdom of Saudi Arabia will invest one billion US dollars in the Reko Diq gold and copper project, reported 24NewsHD TV channel on Wednesday.
Finance Ministry sources said that as part of the deal, Saudi Arabia will buy shares of Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL) and Government Holdings (Private) Limited in the Reko Diq mine.
Sources said these companies own 10 percent of the project and this is where Saudis will invest $1 billion.
“There are preparations for Saudi investment next month,” sources said.
The prime minister will constitute a committee about Saudi investment in the Reko Diq project.
“The committee will be comprised of the officials from the finance ministry, OGDCL, PPL, and the energy ministry,” according to sources.
“A summary will be dispatched to the Ministry of Finance and the Energy Ministry for the constitution of the prime minister’s committee.”
“The committee members will visit Saudi Arabia for final negotiations,” sources said.
Pakistan and the Kingdom of Saudi Arabia will ink an inter-governmental agreement for investment in the Reko Diq project.
Experts believe Reko Diq, contains one of the world’s largest untapped reserves of copper and gold.
“Reko Diq is one of the bigger copper-gold undeveloped projects in the world,” said Mark Bristow, chief executive of Barrick, which aims to start mining in 2028 subject to an ongoing feasibility study. “It’s a very big deal. Any copper mine right now is a big deal.”
Last year in December, Pakistan and Barrick Gold Corporation signed an $8 billion landmark agreement on the Reko Diq project.
Reko Diq is one of the world’s largest undeveloped copper-gold mines. The project is being restarted after remaining on hold since 2011.
A delegation of Barrick Gold during meeting a with Prime Minister Shehbaz Sharif provided an update on the project and stated that the feasibility study will be finished by the end of 2024.
Shehbaz Sharif was informed that preference will be given to local and Balochistan-domiciled persons to work on the Reko Diq project.