Saudi Arabian mining fund Manara Minerals is set to acquire a 10–20% stake in the Reko Diq copper-gold project in Pakistan.
The acquisition, valued at between $500m (SR1.88bn) and $1bn, involves purchasing the stake from the Pakistan Government, which, along with the province of Balochistan, owns half of the project, according to a report by the Financial Times.
The remaining 50% stake is held by Canadian mining company Barrick Gold, the developer of the Reko Diq project. The company recently announced that it would not reduce its 50% stake in the project.
According to Barrick Gold, the project is anticipated to generate approximately $74bn in free cash flow over the next 37 years, based on consensus long-term prices.
Barrick Gold CEO Mark Bristow stated that an initial estimated capital expenditure of $5.5bn (C$7.88bn) will be allocated to develop the first phase of the mine, according to a report by Reuters.
This phase is expected to produce 200,000 tonnes of copper concentrate and 250,000oz of gold annually.
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By GlobalData
Bristow added that the starter mine is scheduled for completion by 2029, with a second phase requiring an additional $3.5bn investment to double production.
Barrick Gold has long asserted that Reko Diq is one of the world’s largest undeveloped copper-gold prospects.
The project boasts a high copper grade of 0.53%, translating to approximately 5kg of copper per tonne of ore mined.
Once the expansion is complete, the mine is expected to process over 90 million tonnes of ore annually.
The Reko Diq project, which faced delays due to a dispute resolved in 2022, is expected to commence production by the end of 2028.
Barrick Gold holds a 50% stake in the mine, with the remaining stake owned by the governments of Pakistan and Balochistan.
In May last year, Brazilian miner Vale concluded the sale of a 10% stake in Vale Base Metals to Manara Minerals for $2.5bn (12.99bn reais).
The transaction was completed following approval from regulatory authorities.
