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Saudi Arabia's Manara Minerals to acquire a 10-20% stake in Pakistan’s Reko Diq copper and gold mine

Saudi Arabia's Manara Minerals Investment Company plans to acquire a 10-20% stake in the Reko Diq project in Pakistan, the world’s largest copper and gold mine.The Mining Fund, a key shareholder in the company, will purchase the stake from the Pakistani government, which owns 25% of the mine, for an estimated $500 million to $1 billion. The deal will include a future production offtake agreement.

 

Reko Diq, being developed by Canada’s Barrick Gold Corporation, is set to become one of the world’s largest copper and gold mines once completed, with an estimated development cost of $9 billion.

 

According to Barrick, the mine, located in western Balochistan near the Afghan and Iranian borders, is expected to produce up to 400,000 tons of copper and 500,000 ounces of gold annually after the two-phase project is completed.

 

Barrick Gold CEO, Mark Bristow, noted that the initial phase of the mine will cost $4.5 billion, with $1.5 billion funded by Barrick, a slightly smaller amount contributed by Pakistan, and the remainder financed through a debt consortium that includes the World Bank, the Asian Development Bank, and other Western lenders.The second phase of the project, also estimated at $4.5 billion, will be funded by revenues generated during the first phase, Bristow added.

 

Some infrastructure has already been developed at the site, including an airstrip and accommodations for 1,000 workers, in anticipation of construction starting soon, according to the Financial Times.

 

In December 2024, the Pakistani government approved the sale of a 15% stake in the mine to Saudi Arabia for $540 million.





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