Pakistan and Saudi Arabia are expected to make progress on the Reko Diq deal

• Progress on the deal is expected during the three-day minerals forum in Riyadh.
• The Energy Minister is leading the high-level Pakistani delegation.
• Delegation likely to discuss KSA’s interest in refinery construction.

Islamabad: Talks with Saudi Arabia on a potential investment deal on the Reko Diq copper and gold project are expected to move forward during a three-day minerals forum that began today in Riyadh, The news an energy ministry official was quoted as saying on Tuesday.

A high-level Pakistani delegation led by caretaker Energy Minister Muhammad Ali is attending the Future Minerals Forum (FMF), a platform to promote mineral value chains in Africa, West and Central Asia, to be held from 9 to January 11 in Riyadh.

The secretary of petroleum department and officials from 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) will also be part of the delegation.

The delegation is also likely to discuss Saudi Arabia’s interest in building a refinery in Pakistan, the official said.

“Pakistani authorities may also discuss this matter of utmost importance with Aramco officials during the visit.” Aramco wants the participation of Sinopec — a Chinese company in the refinery project and Pakistan has agreed to it.

Saudi Arabia is seeking to attract SR 63.7 billion ($170 billion) worth of investment in the mining industry by 2030 to help the country exploit its wealth of mineral resources, the total value of which is estimated to exceed 4.88 SR trillion ($1.3 trillion), an official said.

In 2022, the Geological Survey of Pakistan (GSP) and Ma’aden, a mining company owned by Saudi Arabia, developed an agreement for a survey to locate the mineral treasures.

Apart from participating in the Forum, the official said, the relevant authorities of Saudi Arabia and Pakistan during the visit will also discuss the possible investment in the Reko Diq project and the two countries may enter into an agreement for this purpose.

In addition, the visiting authorities are also likely to respond to Saudi Arabia’s interest in setting up a state-of-the-art deep conversion refinery in Pakistan. SIFC is very keen to sell government shares to Saudi investors to enhance the Saudi investment footprint in Pakistan.

The investment to be made by Saudi Arabia (KSA) investors will be treated as a strategic investment, an official said in The newswhile citing SIFC’s top executive.

Under the revised deal, Canada’s Barrick Gold Corporation holds a 50% stake, while Chile’s Antofagasta exited the project in exchange for $900 million deposited by three federal government entities – OGDCL, PPL and Government Holdings Private Limited .

These entities hold a 25% stake in the project, while the same number of shares belongs to Balochistan. Of these, 15% are fully funded and 10% are free transport.

Power Minister Ali and senior officials of the power department were instrumental in directing SIFC to enter into a government of Pakistan agreement with K Electric and resolve all its issues to facilitate its main owner Aljomaih Power Limited Company of Saudi Arabia.

It was one of the Kingdom’s conditions that Pakistan should first facilitate Saudi Arabia’s Aljomaih Power Limited by resolving all KE issues for more investment in Pakistan in mines, refineries, agriculture and other sectors.

The majority of shares — 66.4% — of the company are listed on the PSX owned by KES Power, a consortium of investors that includes Saudi Arabia’s Aljomaih Power Limited, National Industries Group (Holding), Kuwait and the Infrastructure and Growth Capital (IGCF). ).