Petroleum Minister Musadik Malik clarified on Tuesday that the federal cabinet has not approved the sale of a 15% stake in the Reko Diq project, valued at $540 million, to Saudi Arabia under the Inter-Governmental Commercial Transactions Act. He denied reports suggesting that an agreement had been finalized with the Kingdom of Saudi Arabia (KSA) regarding the project.
Malik confirmed that while discussions with Saudi Arabia are ongoing, no final agreement has been reached, and the cabinet has not yet granted approval. He mentioned that a deal on the Reko Diq stake is expected to be finalized in the coming year.
Earlier reports had claimed that the federal cabinet had approved the sale, stating that Saudi Arabia would acquire the 15% stake in two phases. The first phase would involve a 10% acquisition for $330 million, while the second phase would involve the purchase of an additional 5% for $210 million. Additionally, the Saudi Fund for Development was said to pledge $150 million for mineral resource development in Balochistan.
The Reko Diq project, one of the largest undeveloped copper-gold mines globally, is located in Chagai, Balochistan. It holds estimated reserves of 5.9 billion tonnes of ore, containing 0.41% copper, with gold reserves totaling 41.5 million ounces. Barrick Gold holds a 50% stake, with the remaining shares owned by the federal and Balochistan governments.
