Saudi Arabia to acquire world’s Largest gold mine
Shafaq News/ Saudi Arabia's Manara Minerals InvestmentCompany plans to acquire a 10-20% stake in the Reko Diq project in Pakistan,the world’s largest copper and gold mine.
The Mining Fund, a key shareholder in the company, willpurchase the stake from the Pakistani government, which owns 25% of the mine,for an estimated $500 million to $1 billion. The deal will include a futureproduction offtake agreement.
Reko Diq, being developed by Canada’s Barrick GoldCorporation, is set to become one of the world’s largest copper and gold minesonce completed, with an estimated development cost of $9 billion.
According to Barrick, the mine, located in westernBalochistan near the Afghan and Iranian borders, is expected to produce up to400,000 tons of copper and 500,000 ounces of gold annually after the two-phaseproject is completed.
Barrick Gold CEO, Mark Bristow, noted that the initial phaseof the mine will cost $4.5 billion, with $1.5 billion funded by Barrick, aslightly smaller amount contributed by Pakistan, and the remainder financedthrough a debt consortium that includes the World Bank, the Asian DevelopmentBank, and other Western lenders.
The second phase of the project, also estimated at $4.5billion, will be funded by revenues generated during the first phase, Bristowadded.
Some infrastructure has already been developed at the site,including an airstrip and accommodations for 1,000 workers, in anticipation ofconstruction starting soon, according to the Financial Times.
In December 2024, the Pakistani government approved the saleof a 15% stake in the mine to Saudi Arabia for $540 million.
