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Major breakthrough in Saudi’s Reko Diq acquisition plans: Saudi Arabia reportedly secured approval from Pakistan’s cabinet to acquire a 15% stake in the Reko Diq copper-gold mining project for USD 540 mn, according to unconfirmed reports from Pakistani media outlets
Background: PIF-backed Manara Minerals — a joint venture between the Public Investment Fund and Ma’aden — reportedly submitted an offer to acquire the stake in August, with reports at the time suggesting the offer could be worth USD 1 bn. A feasibility study on the planned acquisition was set to be completed by this month.
More on the sale: The 15% stake in Reko Diq will be acquired via direct transactions that are structured in two tranches. The first installment will involve a USD 330 mn payment for a 10% share in the mine, with the second seeing a USD 210 mn payment for another 5%. Additionally, the Saudi Fund for Development has pledged USD 150 mn to support mining in Balochistan while Saudi’s government has also expressed an interest in further mining investments in Chagai District, where the Reko Diq mine is located.
About Reko Diq: The project is 50% owned by Barrick Gold, 25% by Pakistan’s federal government, and 25% by Pakistan’s Balochistan province. Currently in the feasibility phase, production is expected to kick off 2028. The estimated total project cost is between USD 6 bn and USD 6.5 bn, requiring USD 3 bn to USD 3.5 bn in debt financing.
