Global experts set Reko Diq mine share price ahead of Saudi deal, PM’s aide says

• Saudi Arabia interested in acquiring stake in Reko Diq: prime minister’s aide.
• The government hired a global consultant to value the shares of mine: Jahanzeb Khan.
• Experts set the price of a share from $0.87 to $1.
  

ISLAMABAD: International experts have assessed the share price of the Reko Diq gold and copper mine as Pakistan looks to sell its stake to Saudi Arabia in the multibillion-dollar project, the prime minister’s aide said.

“Experts have pegged the price of a share from $0.87 to $1,” Dr Jahanzeb Khan, adviser to the prime minister on the Special Investment Council (SIFC), told the media on Tuesday.

He said the government would retain a majority stake in the project even after the stake is sold to the kingdom.

The statement comes days after caretaker Prime Minister Anwaar-ul-Haq Kakar said the government expects to reach an agreement with Saudi Arabia by December this year to sell shares in the Reko Diq project — one of the largest gold mines and of copper in the world. Balochistan.

In an interview with Arab Newsthe prime minister had confirmed that negotiations were underway with Riyadh to sell shares in the Reko Diq project, saying he was “hopeful” of a deal by December.

“We are very excited about Saudi Arabia’s offer and we would very much encourage their participation, not only in this project but also otherwise,” Prime Minister Kakar said when asked if it was acceptable for the Pakistani government to sell its equity to Saudi Arabia. .

“It’s the negotiation part, that’s happening between the three parties, and let’s see what kind of result comes out of that… We’re just a government that will encourage the Saudis to be part of this deal and the rest of the -Hard details, when they come up with a specific decision, we will share the news.”

Canada’s Barrick Gold Corporation holds a 50% stake in the project under the revised deal, while Chile’s Antofagasta pulled out in exchange for $900 million deposited by three government entities, including Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum. Limited (PPL) and Government Holdings Private Limited (GHPL).

The aforementioned entities hold a 25% stake in the project — aimed at mining the undeveloped copper-gold deposits at Reko Diq, while the remaining 25% belongs to Balochistan, including 15% on a fully funded basis and 10% on a royalty basis.

Barrick considers the mine one of the largest underdeveloped copper-gold areas in the world, with the more than $7 billion project capable of producing 200,000 tonnes of copper and 250,000 ounces of gold annually for more than half a century.

Barrick chief executive Mark Bristow has repeatedly said the company’s stake was not for sale, but had no objection if Saudi Arabia wanted to buy the Pakistani government’s equity, which would mean the southern country Asia would no longer be able to maintain the same value. shares as a Canadian mining company.

“We are still getting closer to that day,” Prime Minister Kakar said when asked if his government would succeed in meeting the December 25 deadline. “Hope [we can expect a deal by December].”

In August, Pakistan hosted officials from Saudi Arabia at the inaugural mining conference in Islamabad, where Barrick officials were also present. Barrick and Saudi Arabia’s state-owned mining company Ma’aden jointly operate a copper project in Jeddah.

Saudi Arabia’s Public Investment Fund (PIF) is looking to invest in copper projects around the world as part of its effort to finance energy transition projects.