Pakistan has agreed to sell a 15% share in the Reko Diq mining project to Saudi Arabia as part of an intergovernmental agreement. The Pakistani federal cabinet has approved the sale of a 15% share in the Reko Diq mining project to Saudi Arabia. The shares will be sold under an intergovernmental deal for $540 million. Saudi Arabia will invest the funds in two stages.
Pakistan has agreed to sell: According to a story published by The Express Tribune on Tuesday (December 31), Saudi Arabia will pay $330 million in the first phase for a 10% interest. In the second phase, it will pay another $210 million for the remaining 5% ownership.
The Reko Diq mining project contains massive amounts of copper and gold. Experts believe that extracting these resources might considerably benefit Pakistan’s economy.
Currently, Pakistan’s federal and Balochistan governments own 50% of the Reko Diq project, with the remaining 50% owned by foreign institutions and enterprises.
The Saudi Fund for Development has offered $150 million to Balochistan for the development of Pakistan’s mining sector. The Reko Diq mine, in the Chagai district of Balochistan, is one of the world’s largest copper and gold mines.
In 2011, the Pakistani government canceled Tethyan Copper Company’s (TCC) mining lease, citing charges of contract irregularities. TCC, a joint venture between Barrick Gold and Antofagasta Minerals, intended to engage in the Reko Diq project after discovering significant mineral resources there.
However, after the cancellation, TCC requested international arbitration. In 2019, the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) decided in favor of TCC and ordered Pakistan to pay $6 billion in compensation.
To avoid this large penalty, Pakistan pursued negotiations with Barrick Gold, eventually reaching an agreement in 2022.
Pakistan has agreed to sell….Pakistan has agreed to sell…..
