PM’s aide says global experts set Reko Diq mine share price ahead of Saudi deal

This illustration taken on November 19, 2021 shows a small toy figure and gold foil in front of the Barrick logo.  - Reuters
This illustration taken on November 19, 2021 shows a small toy figure and gold foil in front of the Barrick logo. – Reuters
  • Saudi Arabia interested in acquiring stake in Reco Diq: PM’s aide.
  • The government appointed a global consultant to evaluate the mine stake: Jahanzeb Khan.
  • Experts set the price of a share at $0.87 to $1.

ISLAMABAD: International experts have assessed the share value of Reco Diq gold and copper mine as Pakistan looks to sell its stake in the billion-dollar project to Saudi Arabia, the prime minister’s aide said.

“Experts have set the price of one share at $0.87 to $1,” Dr. Jahanzeb Khan, advisor to the Prime Minister on Special Investment Council (SIFC), told the media on Tuesday.

He said the government will retain majority stake in the project even after selling the stake to the state.

The statement comes days after Caretaker Prime Minister Anwar-ul-Haq Kakkar said the government is planning to sell stake in the Reko Diq project – one of the world’s largest gold and copper mines – in December this year. It is hoping to reach an agreement with Saudi Arabia by. Balochistan.

in an interview with arab newsThe prime minister confirmed that talks were ongoing with Riyadh to sell shares in the Reko Diq project, adding that he “hoped” for a deal by December.

When PM Kakar was asked whether it was acceptable to the Pakistan government to sell its equity to Saudi Arabia, he said, “We are quite enthusiastic on the Saudi proposal, and we will encourage their participation not only in this project but otherwise also ” ,

“This is part of the negotiations that are taking place between the three parties, and let’s see what comes out of it… We are just a government that will encourage the Saudis to be part of this deal and the rest of the nuances – Gambhir Details, we will share the news when they reach a definite decision.

Under the amended agreement, Canadian company Barrick Gold Corporation holds 50% shares of the project, while Chilean company Antofagasta acquired the project in exchange for $900 million deposited by three government entities including Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum The money has been withdrawn. Ltd. (PPL) and Government Holdings Pvt. Ltd. (GHPL).

The above entities hold a 25% stake in the project – which aims to mine undeveloped copper-gold deposits in Reko Diq, while the remaining 25% belongs to Balochistan, with 15% on a fully funded basis and 10% free-floating. -Included on floating basis. ,

Barrick considers the mine to be one of the largest undeveloped copper-gold fields in the world, with the $7 billion-plus project capable of producing 200,000 tonnes of copper and 250,000 ounces of gold per year for more than half a century.

Barrick CEO Mark Bristow has repeatedly said the company’s stake is not for sale, but he has no objection if Saudi Arabia wants to buy the Pakistan government’s equity, which would mean the South Asian country would no longer be on par. Will be able to keep. Shares as a Canadian mining company.

When Prime Minister Kakar was asked whether his government would be successful in meeting the December 25 deadline, he said, “We are still close to that day.” “hopefully [we can expect a deal by December],

In August, Pakistan hosted Saudi Arabian officials at its inaugural mining conference in Islamabad, where Barrick officials were also present. Barrick and Saudi state-owned mining company Ma’aden jointly operate a copper project in Jeddah.

Saudi Arabia’s Public Investment Fund (PIF) is looking to invest in copper projects around the world as part of its drive towards financing energy transition projects.

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