Saudi Arabia, Pakistan Negotiate Significant Copper Deal
The Kingdom of Saudi Arabia and Pakistan have recently entered negotiations concerning a significant copper deal, signaling a deeper economic cooperation between the two nations.
The focal point of these talks is Saudi Arabia’s interest in purchasing a part of Pakistan’s share in the Reko Diq project, one of the world’s largest unexplored copper and gold deposits.
Background on Reko Diq Copper Deal
The Reko Diq copper project, located in Pakistan’s Balochistan province, is a $7 billion venture that hosts a large unexplored deposit of copper and gold.
This project is a joint venture whose stakes are held by the government of Pakistan, Barrick Gold Corp, and the Balochistan regional government.
The vast untapped resources of Reko Diq present a lucrative opportunity for investors and could significantly contribute to Pakistan’s economy if developed.
Saudi Arabia’s Interest
Saudi Arabia has expressed its intention to acquire a share of this valuable project.
The negotiations revolve around Saudi Arabia potentially buying a portion of the government’s stake in Reko Diq through an equity purchase.
This initiative aligns with Saudi Arabia’s broader strategy to diversify its investments and reduce its economic reliance on oil.
As per recent updates, the discussions between Saudi Arabia and Pakistan are ongoing; Saudi officials are in talks with both the Pakistani government and Barrick Gold Corp which holds a significant share in the project.
The Saudi Public Investment Fund (PIF) is specifically engaged in discussions with Barrick Gold regarding the potential purchase of equity in Reko Diq.
Implications, Potential Outcomes
The successful conclusion of this deal could open doors for further Saudi investments in Pakistan, bolstering economic ties between the two nations.
Additionally, the development of the Reko Diq project could stimulate Pakistan’s mining sector, creating jobs, and contributing to the local economy.
The ongoing negotiations between Saudi Arabia and Pakistan over the Reko Diq copper project symbolize a potential economic milestone.
This deal could not only fortify the economic relationship between Saudi Arabia and Pakistan but also propel Pakistan’s mining sector into a new era of growth and development.
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