Sawiris Mulls $7bn Investment in Reko Diq; Saudi Arabia Wants to Be Partner
Naveed Ahmed
Following Saudi Arabia, Egyptian tycoon Naguib Sawiris, a luminary in the realms of telecommunications and gold mining, is also considering a substantial investment in Pakistan’s Reko Diq Copper Gold project.
As far as the volume of foreign investment is concerned, Sawiris wants to invest $7 billion. He wants to expand his business footprint within the vibrant landscape of Pakistan.
Reko Diq is in Balochistan province, where the country’s deep-sea ‘Gawadar Port’ is also situated. The port is connected to the southern Chinese provinces through the China-Pakistan Economic Corridor (CPEC).
Balochistan province is full of geological resources. It is estimated that Reko Diq has one of the global largest untapped reserves of copper and gold. The project has the potential to produce 0.2 million tons of copper and 0.25 million ounces of gold per year for over fifty years.
Presently, Canadian firm Barrick Gold Corporation owns 50 percent shares in the Reko Diq project. The federal companies i.e. Oil & Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings Private Limited collectively own a 25 percent stake while the remaining 25 percent is held by the Balochistan government.
Last week, Barrick Gold’s President and CEO Mark Bristow also arrived in Pakistan for a week-long visit. He will discuss the progress of the Reko Diq copper-cum-gold project and also meet with the authorities.
This collaboration combines expertise and resources, underscoring the significance of the project at local and international levels. The project is located near the Pakistani border with Afghanistan and Iran. It further adds to the geopolitical and strategic significance.
Saudi Arabia Also Wants Partnership for the World’s Fifth Largest Copper-Gold Project
It is to be noted that Saudi Arabia is also in talks with the Pakistani government and Canada’s Barrick Gold about investing in its Reko Diq copper project. It wants to be a partner in this venture as the kingdom looks to diversify its economy from oil. A senior official of the Pakistani Petroleum Division told The Newser, “Yes, we are on it. We are discussing with all the relevant partners, but materializing may take a few months.”
When asked, what share the government would be offering to interested parties? sources said. “It has not yet been finalized, but the federal and provincial governments own shares and hopefully Barrick Gold too may offer its shares to other potential partners.”
In August 2023, the civil-military-run Special Investment Facilitation Council (SIFC) of Pakistan approved the hiring of consultants to reduce the shareholdings of Pakistan and Barrick Gold equally in favor of Saudi Arabia and make it a partner.
The SIFC recently wrote to three oil and gas Pakistani entities sharing a 25 percent shareholding of the federal government to conclude transactions with Saudi companies soon after. The Pakistani companies are Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holding Private Limited (GHPL). By the end of September 2023, these companies, except GHPL, have conveyed to the Pakistan Stock Exchange (PSX). GHPL is not listed with PSX so it is not bound to report to the stock exchange.
