Skip to content Skip to Search
Skip navigation

PIF close to buying Pakistan copper mine stake

The reported $1 billion stake in the copper-gold mine would give PIF a 25% share Creative Commons/Maria Vilaró
The reported $1 billion stake in the copper-gold mine would give PIF a 25% share
  • 25% share would cost $1bn
  • 40 years of reserves
  • Deal would be boon for Pakistan

Saudi Arabia’s Public Investment Fund is close to finalising a deal to buy a $1 billion stake in Pakistan’s Reko Diq copper-gold mine, in what would be a Saudi lifeline for the debt-ridden country, a Pakistani newspaper has reported.

Barrick Gold, the Canadian-listed company that owns a 50 percent stake in the Reko Diq mine, said last year that it would support PIF taking the Pakistan government’s 25 percent stake. The other 25 percent is owned by the province of Balochistan. 

Pakistan said in November that it had appointed an international adviser to conduct a valuation of its stake in the mine and hoped to conclude a deal in December at the earliest with Saudi Arabia. 

A new government under prime minister Shehbaz Sharif took power in March. 

The Express Tribune, a Pakistani daily, said on 3 April that Pakistan would send a committee to Saudi Arabia within weeks to complete the deal, which would see the Pakistan government-owned Oil and Gas Development Company Ltd and Pakistan Petroleum Limited sell their shares. 

Both companies are publicly traded on the Pakistani stock exchange, but Oil and Gas has a secondary listing in London. 

“Saudi Arabia is expected to invest in the project next month,” the paper said.

PIF and the consultancy said to be involved, the UAE-based RB&A Partners, did not respond to requests for comment. 

The mine deal would be a big boon for Pakistan, which narrowly averted a sovereign default last year after a $3 billion bailout from the International Monetary Fund. 

Reko Diq is believed to have one of the world’s largest reserves of copper and gold, estimated at 5.9 billion tonnes of ore grading 0.41% copper and 41.5 million ounces of gold reserves, worth $95 billion at today’s price, and a projected mining life of at least 40 years

Latest articles

Russians Turkey Istanbul Bridge

Russians rush from Turkey as costs and restrictions bite

Rising costs, increased difficulties in obtaining residency permits and tighter enforcement of restrictions on the number of foreign nationals who can live in popular regions are prompting an exodus of Russian citizens from Turkey.  The number of Russian nationals holding Turkish residence permits has plunged to just over 96,000 as of May 16, down from […]

Saudi Comac Dongfeng He Bandar al-Khorayef

Chinese planemaker banned by US woos Saudi airlines

The boss of a leading Chinese planemaker arrived in Saudi Arabia this week to pitch his aircraft just as the United States said it was close to finalising a defence agreement with Riyadh that is meant to limit its trade links with China.  Dongfeng He, chairman of Comac, the Commercial Aircraft Corporation of China, wants […]

The UAE's minister of industry and advanced technology, Sultan Al Jaber, left, met Karl Nehammer, Chancellor of Austria, for talks on trade

Austrian finance unicorn to open in UAE

Austria’s first unicorn has announced plans to set up in Dubai, as officials from the UAE hold top-level talks in Vienna to build on a 22 percent increase in bilateral trade last year A unicorn is a startup company valued at more than $1 billion that is privately owned and not listed on a share […]