Saudi Arabia’s Minister for Investment, Sheikh Khalid Bin Abdul Aziz Al Falih, on October 10 confirmed that Manara Minerals, a Gulf state entity, will invest $1 billion in Pakistan’s Reko Diq gold and copper mine project in Balochistan which is set to begin production by 2028. The federal government hailed the investment as a significant achievement.
This Saudi investment is part of the promised $5 billion investment package for Pakistan announced during the visit of Prime Minister Shehbaz Sharif to the Kingdom of Saudi Arabia.
Manara Minerals, a newly formed joint venture between the Public Investment Fund (PIF) and the Saudi Arabian Mining Company (Ma’aden), will enter into a partnership with Pakistan’s state-owned enterprises and Barrick Gold for the Reko Diq project completion in the coming few weeks, as per latest information.
Manara Minerals Investment Company was recently established through a partnership between the Saudi government’s mining company, Ma’aden, and its sovereign wealth fund. Essentially, this is a direct Saudi government investment in Reko Diq, fulfilling a commitment made by Crown Prince Muhammad Bin Salman in April.
“I am glad we have a newly formed venture called Manara between PIF and Ma’aden — our national champion in mining — and they are eager to start a number of initiatives, but the first one we hope to conclude in the next few weeks will be for them to enter into the Reko Diq project with state-owned enterprises of Pakistan,” Al Falih said during the Pakistan-Saudi Arabia Business Forum in Islamabad, where he is on a three-day visit.
He also mentioned Barrick Gold’s involvement in Saudi Arabia, stating that their partnership “adds value to the project,” and describing the Reko Diq initiative as “sort of a pilot project that we hope will be multiplied many times over.”
Al Falih confirmed that both countries are working on 27 agreements and memoranda of understanding (MoUs) valued at around $2 billion, which were to be signed throughout the day.
“We want to support Pakistan in continuing its economic stabilisation. Without Pakistan reaching its economic stability, it’s very difficult to do things together,” he said, commending Pakistan’s progress over the last two years as “quite impressive.”
He also noted that trade between Saudi Arabia and Pakistan had surged by 80%, rising from $3 billion in 2019 to $5.4 billion.
Though details remain unclear, Saudi Arabia is expected to buy a minority stake in the Reko Diq project by acquiring part of Pakistan’s share.