Petroleum Minister Musadik Malik Refutes Claims of Finalized Reko Diq Deal with Saudi Arabia

Petroleum Minister Musadaq Malik refuted the claims of the deal being finalized with Saudi Arabia over Reko Diq.

During a meeting with journalists in Islamabad on Tuesday, Petroleum Minister Musadaq Malik stated that negotiations with Saudi Arabia regarding Reko Diq are ongoing and showing positive progress. However, he emphasized that no agreement has been finalized yet.

He expressed optimism that a deal with Saudi Arabia could be concluded soon, with strong potential for completion by early 2025.

Malik also clarified that reports of cabinet approval for the deal were inaccurate. He noted that a committee established to oversee the negotiations has completed its work.

The Reko Diq project is one of the world’s largest undeveloped copper-gold mines, located in Balochistan, Pakistan. It is estimated to have reserves of 5.9 billion tonnes of ore with a grading of 0.41% copper and approximately 41.5 million ounces of gold, with a projected mining lifespan of at least 40 years.

The project is currently jointly owned by the federal and Balochistan governments (50%) and Barrick Gold (50%).

It was reported earlier in the day that the federal cabinet on Tuesday approved the sale of a 15% stake in the Reko Diq mining project to Saudi Arabia, valued at $540 million.

This transaction will occur in two phases under the Inter-Governmental Commercial Transactions Act. In the first phase, Saudi Arabia will acquire a 10% stake for $330 million, followed by a 5% stake for $210 million in the second phase.

Key Details of the Transaction

• Total Value: $540 million (approximately Rs150.27 billion)
• Payment Structure:
  • Phase 1: $330 million for a 10% stake
  • Phase 2: $210 million for a 5% stake
• Additional Investment: The Saudi Fund for Development has pledged an extra $150 million to support mineral development in Balochistan.