Saudi Arabia’s Manara Minerals is on track to invest in Pakistan’s Reko Diq mine within the next two quarters, according to Pakistan’s Petroleum Minister, Musadik Malik. Musadik talked at the Upcoming mineral forum in Riyadh about the ongoing developments in the sector of copper.
“I’m very full of hope and confident that in the next quarter or two, we will about to reveal big announcements,” he said, highlighting that the upcoming investment would be all about copper. Musadiq stated that besides Reko Diq, other mining opportunities are also available in the region having the potential to attract maximum investments towards itself.
Saudi Mining Minister Bandar Alkhorayef also confirmed that Saudi Arabian mining company Manara Minerals was looking at investing in Balochistan’s Reko Diq mine. He added that the Saudi Development Fund could contribute over $100 million to Pakistan’s mining infrastructure.
Manara Minerals is a joint venture between Saudi Arabia’s state-controlled mining giant Ma’aden and the country’s powerful sovereign wealth fund, the Public Investment Fund (PIF), which aims to control or manage assets having of worth of $925 billion. The organization was established as part of Saudi Arabia’s broader strategy to bring diversification in its economy beyond oil by investing in strategic assets worldwide, particularly in the mining sector.
Read more: Pakistan discovers Rs 800 billion worth of gold reserve in the Indus River
Saudi Arabia’s PIF, through Manara Minerals, has proposed plans for securing a 15% stake in Reko Diq in two tranches:
- First 10% upon signing the agreement
- Remaining 5% upon the final investment decision
Saudi Arabia’s growing interest in Pakistan’s mineral resources is strongly reflected in this move, especially in one of the world’s largest underdeveloped copper and gold reserves.
Previous Negotiations and progress
Executives from “Manara” had made a visit to PK for negotiations regarding their potential investment in Reko Diq. The discussions were part of Pakistan’s broader efforts to attract foreign direct investment in its mining sector, which remains largely untapped despite its vast potential.
Malik’s comments suggest that talks are progressing positively and could soon materialize into a formal agreement. When made an inquiry whether Manara Minerals would be part of the deal, Malik responded with enthusiasm, “Why not? Of course.”
Strategic Importance & Investment
If finalized, the investment would mark a significant milestone in Pakistan-Saudi economic relations, strengthening cooperation in non-oil sectors and boosting Pakistan’s mining industry. The Reko Diq mine, located in Balochistan, is estimated to hold vast reserves of copper and gold, making it a highly attractive project for global investors.
Future prospects:
- Saudia Arabia is constantly looking for making expansion in its mining portfolio and Pakistan also showing massive interests on securing foreign investment, this potential deal could pave the way for further collaborations in the mineral sector.
- Industry experts believe that once the agreement is finalized, it could bring technological advancements, job creation, and economic benefits to Pakistan’s mineral-rich province.