Saudi Arabia Proposes to Buy 15% Stake in Reko Diq Mining Project
Saudi Arabia has made an offer to purchase a 15 percent stake in Pakistan’s Reko Diq mining project and has proposed a significant grant for local infrastructure development. The offer, made through Saudi Arabia’s Public Investment Fund (PIF) via Manara Minerals, aims to acquire 15 percent of the federal government’s 25 percent share in the project.
Pakistan will set up a negotiation committee to assess the offer and recommend a final price to the federal cabinet. The Saudi proposal also includes funding for the construction of the Mashkhel-Panjoor road, with the Ministry of Economic Affairs working with the Saudi Fund for Development to finalize this initiative.
The Pakistani government is working to secure the best possible deal by encouraging Saudi Arabia to make an upfront payment to local companies holding stakes in the project. Additionally, negotiations are ongoing for further financial support from Saudi Arabia, including a $5 billion investment in mining and agriculture by June 2025.
In a broader financing strategy for the Reko Diq project, the US Export-Import Bank has shown interest in providing up to $2 billion in loans. The total cost of the Reko Diq project is estimated to be between $6 billion and $6.5 billion.
