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Saudi Arabia is the latest to reach a conceivable deal to get a minority stake in a Pakistani mine controlled through Barrick Gold Corp. , other people familiar with the matter said.
Manara Minerals Investment Co. , subsidized through Saudi Arabia’s sovereign wealth fund, plans to invest at least $1 billion in the Reko Diq copper-gold mining project, the sources said. It may simply announce that it has reached an initial agreement on the terms of a transaction as soon as in the next few weeks, according to the resources.
The Saudi company may be increasing its investments in the mine, which is partly owned by the Pakistani government. Discussions are ongoing, and negotiations may still fail or be delayed. A representative of the Saudi Public Investment Fund, which is a major shareholder in Manara, declined to comment. A Barrick spokesman did not respond to questions.
Saudi Arabia is willing to invest in various sectors, adding metals and mining, Pakistani Finance Minister Muhammad Aurangzeb said in an interview on Wednesday. Some “of those projects are now pretty close, so I think we heard the announcements,” Aurangzeb said.
A possible deal would come after Saudi Crown Prince Mohammed bin Salman met with Pakistani Prime Minister Shehbaz Sharif this month. Pakistan this week presented a wide range of investment opportunities, adding solar, mining, hydropower and technology, to a visiting Saudi delegation. Foreign Minister Prince Faisal bin Farhan said the Gulf kingdom plans to press ahead with those opportunities.
The Reko Diq project, in the Balochistan region bordering Afghanistan and Iran, is expected to start production in 2028. Barrick owns 50% of the project, the Federal Government of Pakistan owns a 25% stake, and the Balochistan Regional Government owns the rest.
Saudi Arabia is in talks with Pakistan to buy back some of the government’s stake in Reko Diq, Barrick CEO Mark Bristow said in an interview in November. The world’s second-largest gold maker would move any government closer to the Saudis, while Barrick will not dilute its stake in the project, Bristow said.
With those of Faseeh Mangi, Eric Martin and Ranjeetha Pakiam.
This article was generated from an automated feed from a news company with no text editing.