Saudi Arabia is on the verge of finalizing a significant investment in Pakistan’s Reko Diq mine, a project with vast potential in copper and gold production. The kingdom, through its investment fund Manara Minerals, is nearing a deal to acquire a minority stake worth nearly $1 billion in the $7 billion venture, which is largely controlled by Barrick Gold, the world’s second-largest gold producer.
Sources close to the negotiations have indicated that the preliminary agreement could be announced within weeks, although they cautioned that talks are still in the early stages and could potentially fall through or be delayed. The potential investment by Manara Minerals, a joint venture between the state-owned miner Ma’aden and the Saudi Public Investment Fund (PIF), marks a strategic move to diversify Saudi Arabia’s economy beyond its traditional oil base.
The Reko Diq mine, located in the mineral-rich but tumultuous Balochistan region bordering Afghanistan and Iran, represents one of the world’s largest undeveloped copper and gold sites. Barrick Gold estimates that the mine could produce 200,000 tonnes of copper and 250,000 ounces of gold annually for more than half a century, with production slated to start in 2028.
Currently, the ownership structure of the Reko Diq project includes a 50% stake held by Barrick Gold, with the government of Pakistan and the province of Balochistan each holding a 25% interest. According to Bloomberg, the Saudi company might consider increasing its stake in the project over time, potentially buying out portions of the Pakistani government’s share, though Pakistan has not publicly expressed intentions to sell its equity.
Mark Bristow, Barrick’s CEO, has mentioned in recent interviews his preference to maintain the company’s significant stake in the project. However, he noted that he would not oppose Saudi Arabia’s Public Investment Fund acquiring the equity held by the Pakistani government.
This development comes as Saudi Arabia aggressively pursues investments in minerals and metals globally to complement its vast domestic resources of phosphate, gold, copper, and bauxite. Manara’s engagement in Reko Diq follows its first major international venture—a 10% investment in Vale Base Metals, part of the Brazilian miner Vale’s $26 billion copper and nickel spin-off, which was finalized last July.
The involvement of Saudi Arabia’s Manara in the Reko Diq project not only highlights the kingdom’s strategy to secure valuable mineral resources worldwide but also signals potential shifts in the geopolitical and economic landscapes of the region. For Pakistan, the successful development of the Reko Diq mine could bring substantial economic benefits and bolster its mining sector, which has faced numerous challenges, including underinvestment and regulatory hurdles.
