Saudi Arabia’s Manara Minerals is reportedly preparing to acquire a 10% to 20% stake in Pakistan’s Reko Diq copper and gold project for $500 million to $1 billion, Financial Times reported on Tuesday, citing sources.
The fund reportedly plans to purchase the equity share from the Pakistani government, which currently owns 25% of the mine, co-developed by Canada’s Barrick Gold.
Manara Minerals is seeking to buy “between 10-20% of the $9bn complex, which is being developed by Barrick Gold, and secure an offtake agreement for future output,” the report said.
Manara Minerals began exploring the investment in May 2023 when its executives visited Pakistan for discussions.
In August 2024, Barrick Gold’s CEO indicated openness to bringing Saudi Arabia’s wealth fund on board as a partner in the Reko Diq project. The kingdom has been a major external creditor to Pakistan, providing financial support through loan rollovers, central bank deposits, and oil facilities to manage the country’s $9.2 billion debt. However, Saudi Arabia’s enthusiasm for continued financial aid appears to be waning, prompting Pakistan to seek significant Saudi investments.
Reko Diq to generate $74 billion in free cash flow over 37 years
Mark Bristow, CEO of Barrick Gold, recently told media that Reko Diq copper and gold project in Pakistan is expected to generate approximately $74 billion in free cash flow over the next 37 years. This could help generate significant dividends, royalties and taxes for Pakistan, which currently has only around $11 billion in foreign reserves.
Reko Diq is regarded as one of the world’s largest undeveloped copper and gold reserves by Barrick Gold, which owns 50% of the project. The remaining 50% is held by the governments of Pakistan and the Balochistan government.
Reko Diq development timeline and output projections
Reko Diq’s development history has been fraught with political and judicial challenges, but progress is now underway.
Production is expected to commence by 2028, coinciding with a predicted global copper shortage. Barrick estimates an initial capital expenditure of $5.5 billion for the project’s first phase, designed as a starter mine. This phase aims to produce 200,000 tonnes of copper concentrate and 250,000 ounces of gold annually.
A second expansion phase would require an additional $3.5 billion, doubling production capacity to 400,000 tonnes of copper and 500,000 ounces of gold.