The ongoing Future Minerals Forum in Riyadh presents a significant opportunity for Pakistan and Saudi Arabia to advance talks on a potential investment deal in the Reko Diq copper and gold project. Led by caretaker Energy Minister Muhammad Ali, the Pakistani delegation includes key figures from the petroleum division, Special Investment Facilitation Council (SIFC), Pakistan Mineral Development Corporation (PMDC), Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Geological Survey of Pakistan (GSP).
Saudi Arabia aims to attract SR63.7 billion ($170 billion) in mining industry investments by 2030, tapping into its estimated SR4.88 trillion ($1.3 trillion) worth of mineral resources. Discussions during the forum may extend beyond the Reko Diq project, potentially encompassing Saudi Arabia’s interest in constructing a refinery in Pakistan. The delegation may address this with Aramco officials, who seek the involvement of the Chinese company Sinopec in the refinery project, a collaboration Pakistan has agreed to.
The visit also aligns with Saudi Arabia’s keenness to invest in Pakistan, treating it as a strategic investment. The revised agreement for the Reko Diq project allocates 50% of shares to the Canadian company Barrick Gold Corporation, with Antofagasta of Chile exiting the project for a $900 million payment. Government entities OGDCL, PPL, and Government Holdings Private Limited collectively hold 25% shares, while Balochistan holds the remaining 25%.
Beyond minerals, the delegation aims to enhance Saudi investment in Pakistan across sectors, reflecting conditions set by the Kingdom. Notably, resolving issues related to K Electric is crucial, given that its main owner, Aljomaih Power Limited of Saudi Arabia, is a key player in the consortium with majority shares in the company listed on the PSX.
Overall, the discussions during the Future Minerals Forum provide a platform for both nations to deepen economic ties, explore collaborative projects, and strengthen their strategic partnership in various sectors, furthering the interests of both Pakistan and Saudi Arabia.
