Saudi fund targets $1bn investment in Reko Diq

Saudi Arabian mining fund Manara Minerals is set to buy a 10%-20% in the Reko Diq copper and gold project in Pakistan for proceeds of about $500 million to $1 billion, the Financial Times reported on Tuesday.

Manara Minerals, a Saudi-backed entity, is negotiating to acquire an equity stake in Pakistan’s Reko Diq mine, co-developed by Barrick Gold and the governments of Pakistan and Balochistan. The Pakistani government holds a 25 percent share in the project.

Manara Minerals intends to purchase 10–20 percent of the $9 billion venture and secure an agreement for future copper and gold output. Discussions began during a visit by Manara executives to Pakistan in May last year.

Barrick Gold, which owns 50 percent of the mine, plans an initial investment of $5.5 billion to develop a starter mine capable of producing 200,000 tonnes of copper concentrate and 250,000 ounces of gold annually. A second phase, requiring an additional $3.5 billion, could double production to 400,000 tonnes of copper and 500,000 ounces of gold.

Despite political and legal hurdles in the past, progress indicates that production may begin by 2028, aligning with a projected global copper supply deficit.

Saudi Arabia, a key external creditor to Pakistan, is diversifying its investments in the country. This move comes as Pakistan actively seeks foreign investments to strengthen its economy and reduce reliance on loans and oil facilities.

The Reko Diq mine is set to become a major player in global copper and gold markets, promising significant contributions to regional development and Pakistan’s mining sector.