ISLAMABAD – The federal cabinet has granted approval to sell 15 percent shares of Pakistan’s Reko Diq copper and gold mine projects in a major business venture.
Reko Diq, located in Balochistan province, is considered one of the world’s largest undeveloped copper and gold resources. It is primarily operated by Canada’s Barrick Gold, which holds 50% shares of it.
The remaining 50% shares are held by federal and Balochistan governments.
Reports said the cabinet has approved the selling of the shares to Saudi Arabia for $540 million while the payment will be made in two installments.
In first phase, ten percent shares will be transferred to the Kingdom against $330 million while remaining five percent will be handed over after payment of $210 million.
Furthermore, Saudi Fund for Development will also give $150 million for minerals development in Balochistan.
Back in September, Saudi Arabia had offered a 15 percent investment in the Pakistan’s copper and gold mine project.
“Saudi Arabia has offered fifteen percent investment in Reko Diq Mining project,” the Radio Pakistan said in one of its reports in September. “The Kingdom has also offered grants to build road infrastructure around the Reko Diq project.”
“Special Investment Facilitation Council (SIFC) has approved the structure of the offer but the final decision has been left to the Cabinet Committee on Intergovernmental Transactions,” it added.
Pakistan set up the SIFC last year in June with the sole purpose of reviving the frail national economy of the country.
