ISLAMABAD During a three-day mining meeting that started today in Riyadh, talks with Saudi Arabia on a possible investment deal in the Reko Diq copper and gold project are anticipated to advance, according to a Tuesday article from The News that cited an official in the energy ministry.
Attending the Future Minerals Forum (FMF), a platform to develop mineral value chains in Africa, Western and Central Asia, which is being held in Riyadh from January 9 to 11, is a high-level delegation from Pakistan, led by acting Energy Minister Muhammad Ali.
Additionally participating will be the secretary of the petroleum division as well as representatives from the Geological Survey of Pakistan (GSP), Pakistan Mineral Development Corporation (PMDC), Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Special Investment Facilitation Council (SIFC).
According to the person, the delegation would probably also talk about Saudi Arabia’s desire to construct a refinery in Pakistan.
“Pakistan authorities may also take up this issue of paramount importance with Aramco officials during the visit.” Pakistan has granted Aramco’s request for Sinopec, a Chinese business, to be involved in the refinery project.
By 2030, Saudi Arabia hopes to draw SR63.7 billion ($170 billion) in mining investment to help the nation capitalize on its abundant mineral resources, which are estimated to be worth a combined SR4.88 trillion ($1.3 trillion), according to an official.
The Saudi-owned mining company Ma’aden and the Geological Survey of Pakistan (GSP) came to an agreement in 2022 for a survey aimed at finding the treasures.
According to the official, in addition to attending the Forum, the appropriate authorities from Pakistan and Saudi Arabia will discuss potential investments in the Reko Diq project during the visit and may even reach an agreement on this front.
Furthermore, it is probable that the visiting authorities would discuss with Saudi Arabia their desire to establish a cutting edge deep conversion refinery in Pakistan. To increase Saudi investment in Pakistan, the SIFC is eager to offer government shares to investors from that country.
According to a top SIFC official who was quoted by The News, the investment that Saudi investors (KSA) are planning will be considered a strategic move.
In accordance with the amended deal, Chile’s Antofagasta has left the project in exchange for a $900 million deposit made by three federal government entities: OGDCL, PPL, and Government Holdings Private Limited. Meanwhile, the Canadian corporation Barrick Gold Corporation now owns 50% of the shares.
These organizations own 25% of the project, whereas Balochistan owns the same amount of shares. Out of them, 10% are free carried and 15% are completely supported.
The instructions of SIFC to reach a deal between the Pakistani government and K Electric and settle all of its problems in order to facilitate the company’s primary owner, Aljomaih Power, were greatly aided by the involvement of Energy Minister Ali and senior officials of the power division.
One of the requirements set forth by the Kingdom was that Pakistan must first assist Saudi Arabia’s Aljomaih Power Limited by resolving all KE concerns before allowing additional investment in the country’s mining, refinery, agriculture, and other industries.
The company’s majority shares, or 66.4%, are listed on the PSX and are controlled by KES Power, a group of investors that also includes Kuwait’s National Industries Group (Holding), Saudi Arabia’s Aljomaih Power Limited, and the Infrastructure and Growth Capital Fund (IGCF).
