Saudi Arabia offers 15% investment in Reko Diq mining project

The project advances with infrastructure grants and investment plans pending final cabinet decision.

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Saudi Arabia has proposed a 15% investment in Pakistan’s Reko Diq mining project and grants to develop road infrastructure around the site.

The Special Investment Facilitation Council (SIFC) has approved the offer's structure, though the final decision now rests with the Cabinet Committee on Intergovernmental Transactions.

Pakistan anticipates Saudi investments of up to $5 billion in the mining and agriculture sectors by June next year.

In an earlier statement, Pakistan’s Finance Minister, Muhammad Aurangzeb, highlighted Saudi Arabia's growing interest in multiple sectors, including metals and mining. “A few of those projects are now pretty close, so I do think we should hear some announcements coming through,” Aurangzeb mentioned.

A Saudi delegation visited Pakistan a few months ago to explore investment opportunities in solar, mining, hydropower, and technology. Saudi Foreign Minister Prince Faisal bin Farhan emphasized the Gulf kingdom’s intention to proceed with these ventures.

The Reko Diq project in Balochistan’s Chagai district is expected to commence production by 2028. Barrick Gold Corporation holds a 50% share, while Pakistan’s federal government owns 25%, and the Balochistan provincial government holds the remaining stake.

Saudi Arabia has been negotiating to acquire part of the Pakistani government’s share in the project.

In a previous interview, Barrick CEO Mark Bristow affirmed that the company would back any decisions Pakistan makes with Saudi Arabia but ruled out any dilution of Barrick’s equity in the venture.