Manara Minerals to Buy Stake in Pakistan’s Reko Diq Mine
Saudi Arabia’s Manara Minerals is all set to buy a stake in Barrick Gold’s Reko Dig gold and copper mine, controlled by the Canadian mining firm, in the coming weeks, the Kingdom’s Minister for Investment Sheikh Khalid Bin Abdul Aziz Al Faleh said on Thursday.
Reko Diq mine is said to be one of the world’s largest underdeveloped copper-gold areas and is located in Pakistan and Barrick Gold owns a 50% stake in the mine, 25% by three federal state-owned enterprises, and 25% by the Government of Balochistan, of which 15% is on a fully funded basis and 10% is on a free carried basis.
It may be recalled that Barrick Gold said in August that the company was open to bringing in Saudi Arabia’s wealth fund – Public Investment Fund – as one of its partners in Pakistan’s Reko Diq gold and copper mine.
Addressing the Pakistan Saudi Arabia Business Forum in Islamabad on Thursday, Al Faleh said that the Kingdom has formed a new venture called Manara between Saudi Arabia’s wealth fund – Public Investment Fund (PIF) – and Ma’aden, which is Saudi’s national champion in mining.
“They are eager to start a number of initiatives but the first one we hope to conclude in the next few weeks will be for them to enter into the Reko Dig project with state-owned enterprises of Pakistan,” the Saudi Minister said.
The Saudi Minister added: “Barrick Gold is working in Saudi Arabia and sees our partnership as an additive to the project. The decision is a sort of a pilot project that we hope will be multiplied many times over.”
It may be mentioned that Global Business Magazine published a report in August last week that Manara Minerals Investment Company, backed by the Saudi sovereign wealth fund PIF, was planning to invest at least $1 billion by acquiring 15% stake in the Reko Diq project.
The PIF also reportedly offered to give grant for the construction of road infrastructure around the Reko Diq mining project. The government wants to construct the Mashkhel-Panjoor road for smooth movement around the mining area.
Reko Diq is nestled in the Chagai district of Balochistan with close proximity to the Afghanistan and Iran borders. The district is characterised by arid and semi-arid terrain with vast deserts, mountain ranges, and sparse vegetation.
The desert includes the Ras Koh Hills and the Chagai Hills. The district has a sparse population due to its harsh living conditions and majority of the inhabitants are Baloch, with a mix of other ethnic groups.
Chagai faces numerous challenges, including underdevelopment, lack of infrastructure, and limited access to basic services such as education, healthcare, and clean water.
Underdeveloped Project
One of the largest undeveloped copper-gold projects in the world, Barrick Gold is in the process of updating the feasibility studies of the project. The feasibility study would be completed by December and the first production is likely by 2028.
