The federal cabinet has authorized the sale of a 15% shareholding in the Reko Diq Mine for $540 million to Saudi Arabia under the Inter-Governmental Commercial Transactions Act. The operation will take place in two phases. In the first phase, Saudi Arabia will pay $330 million for the acquisition of a 10% stake. The remaining 5% stake will be acquired in the second phase, for which Saudi Arabia will pay a total of $210 million.
Another $150 million for mineral development in Balochistan will be provided by the Saudi Fund for Development.
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It is considered to have the richest gold and copper reserves, estimated to have the fifth-largest gold deposit in the world. The estimated quantity of ore processed is about 5.9 billion tonnes at a grade level of 0.41% copper and 41.5 million ounces of gold reserves, and it is presumed that it will be mined for at least the next 40 years.
Currently, Barrick Gold owns a 50 percent stake in the mine, while holdings are jointly owned 50:50 between the federal and provincial governments, significantly benefitting the region concerned.
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The opening of the Reko Diq area would create vast economic opportunities for Pakistan. This scheme will create jobs, strengthen infrastructure, provide employment, and put in place a long-term source of revenue for the federal and provincial governments as well.
Saudi Arabia has also agreed to invest in mineral exploration in Chagai, as part of its strategic diversification strategy.