Saudi PIF Eyes Stake in Pakistan's Reko Diq Mine

Saudi Arabia's Public Investment Fund (PIF), through its joint venture Manara Minerals, is reportedly nearing a significant deal to acquire a 15% stake in the Reko Diq copper and gold mining project in Pakistan. This development marks a strategic move by Saudi Arabia to diversify its investments beyond oil, focusing on global mining assets.

The Reko Diq project, situated in the resource-rich region of Balochistan, is one of the world's largest undeveloped copper and gold mines. Currently, the project is owned by Barrick Gold, the Pakistani government, and the provincial government of Balochistan, each holding a 50% stake collectively. Barrick Gold, which leads the project, is one of the top gold producers globally and sees Reko Diq as a major asset with the potential to produce substantial quantities of copper and gold annually for over 50 years, starting from 2028.

Manara Minerals, a joint venture between the Saudi state-owned miner Ma’aden and the PIF, is said to be negotiating an investment close to $1 billion for this stake. The deal, still in its early stages, aligns with Saudi Arabia's broader strategy to invest in international mining assets, having already acquired a 10% stake in Vale Base Metals, a Brazilian mining giant, in 2023.

This potential investment underscores Saudi Arabia’s ambitions to become a global player in the mining sector, leveraging its substantial financial resources to secure stakes in strategic projects worldwide. If the deal proceeds, it would mark another significant step in Saudi Arabia's efforts to diversify its economy away from oil dependency, as the kingdom continues to expand its footprint in the global mining industry.
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