January 21, 2025 – Saudi Arabian mining fund, Manara Minerals, is set to acquire a 10-20% equity stake in Pakistan’s Reko Diq copper and gold project, with the deal expected to generate proceeds between $500 million and $1 billion, according to a report by the Financial Times on Tuesday.
The equity stake will be purchased from the government of Pakistan, which currently holds 25% of the mine. The project, considered one of the largest underdeveloped copper-gold areas in the world, is jointly developed by Canada’s Barrick Gold and Pakistan.
Executives from Manara visited Pakistan in May 2024 for discussions about the potential acquisition. The stake in Reko Diq would involve securing an offtake agreement for the mine’s future output, which is expected to become highly lucrative. The mine is valued at approximately $9 billion.
Currently, Barrick Gold owns 50% of Reko Diq, with the remaining 50% split between the governments of Pakistan and Balochistan. The copper and gold mine, located in the Balochistan province, has faced significant political and judicial challenges, but is anticipated to begin production by 2028.
Barrick Gold has highlighted the project’s massive potential, with plans for initial capital expenditures of $5.5 billion to develop its first phase, aimed at producing 200,000 tonnes of copper concentrate and 250,000 ounces of gold annually. A later expansion phase may require an additional $3.5 billion, doubling the mine’s output to 400,000 tonnes of copper and 500,000 ounces of gold.
The move comes at a time when Saudi Arabia is increasingly involved in financially supporting Pakistan, including through loans and oil facilities to help address the country’s $9.2 billion debt. Officials from Pakistan have been actively seeking Saudi investments to bolster their economy, while Saudi Arabia is reportedly growing cautious about its financial commitments.
Barrick Gold has previously expressed its willingness to bring Saudi Arabia’s wealth fund on board as a partner, recognizing the strategic importance of the Reko Diq project, which is poised to address the global copper shortage in the coming years.
