What is the Reko Diq mine, and why does Pakistan want Saudi investment?

Pakistan has set its sights on securing Saudi Arabia's investment for the Reko Diq mine, a coveted site known for its extensive untapped copper-gold resources, located in Balochistan's Chaghi district.

The mine currently sees a 50% ownership split between the Pakistani government and Barrick Gold Corp. Recent attempts by Pakistan to attract Saudi interest have yielded positive signs, as hinted at by Saudi Arabia on November 14.

What Saudi Arabia has indicated

• A Pakistani official informed Reuters about Saudi Arabia's keenness to acquire stakes in the Reko Diq gold mine.
• Islamabad has engaged an international advisor to assess its mine stake's value, with an anticipated completion by December 25, paving the way for discussions with Riyadh.
• Reports from Arab News confirm the hiring of UAE-based consulting firm RB&A.

Barrick previously expressed openness to Saudi Arabia's participation in the mine's $10 billion investment.

Key facts about the mine

• The Reko Diq mine is estimated to contain 12.3 million tons of copper and 20.9 million ounces of gold.
• It is recognized as one of the world’s largest underdeveloped copper projects.
• The mine is reported to possess the world's fifth-largest gold deposit.

Why does Pakistan want Saudi investment?

• Pakistan anticipates Saudi Arabia's investments in the Reko Diq mine to bolster its depleting foreign reserves.
• Foreign direct investments hold significant importance for Pakistan, especially amidst economic challenges marked by soaring inflation and widespread poverty.
• The country grapples with a substantial debt burden of approximately 56.21 trillion as of June 2023, necessitating financial support.
• Earlier this year, Pakistan narrowly averted defaulting by securing a $3 billion IMF bailout package, highlighting its precarious financial situation.