Saudi Arabia is set to acquire a 15% stake in Pakistan’s Reko Diq mining project, valued between $6 billion and $6.5 billion. This move is part of Saudi Arabia’s broader strategy to diversify its economic interests and expand its footprint in the minerals sector, as reported by The Express Tribune.
The stake will be purchased through Manara Minerals, a joint venture between Saudi Arabian Mining Co (Maaden) and the Saudi sovereign Public Investment Fund (PIF). Pakistan’s federal government will sell 15% from its 25% holding in the project to Riyadh. The project requires between $3 billion and $3.5 billion in debt financing.
This investment marks the first initiative under Pakistan’s Special Investment Facilitation Council, designed to streamline overseas investments and expedite project development. Saudi Arabia’s involvement is not limited to mining; it also includes infrastructure development around the mining area. Discussions with the Saudi Fund for Development are underway to finalize a road scheme near the site.
The Reko Diq mining project is expected to commence production by 2028, contributing significantly to Pakistan’s mining sector and economic growth. This partnership also aligns with Saudi Arabia’s ongoing efforts to diversify its economy beyond oil and gas, as highlighted by their recent expansions into the semiconductor sector and renewable energy.
Saudi Arabia’s strategic investments in Pakistan’s mining infrastructure could bolster bilateral economic ties and provide a stable investment climate for future projects. This move reflects Riyadh’s commitment to leveraging its financial clout to secure valuable international assets, further solidifying its role as a key player in the global mining industry.S
