In a landmark agreement, Saudi Arabia has acquired a 15% stake in Pakistan’s Reko Diq project, marking a significant milestone in the development of one of the world’s largest untapped gold and copper reserves. The deal, valued at $540 million, includes $303 million for a 10% share in the first phase and $210 million for the remaining 5%.
Reko Diq, located in Balochistan’s Chagai district, boasts an estimated 5.9 billion tons of gold and copper, with the potential to sustain mining operations for 40 years. This investment reflects growing international interest in Pakistan’s mineral wealth and highlights the strategic importance of Balochistan’s resources.
The agreement grants Barrick Gold a 50% stake in the project, with the remainder shared between the federal government and Balochistan. Beyond Reko Diq, Balochistan harbors over 40 minerals, including oil, gas, uranium, and coal, which could fuel Pakistan’s energy and industrial needs for a century.
Despite the immense potential, Pakistan’s mining sector has faced challenges, including mismanagement, legal disputes, and inadequate infrastructure. In 2024, the economy grew by only 0.92%, while the mining sector contracted by 4.6%, revealing a history of poor governance and squandered opportunities.
Saudi Arabia’s investment in Reko Diq could be transformative, but realizing its potential requires addressing persistent issues such as political instability, bureaucratic hurdles, and inadequate infrastructure. Transparent governance, investor-friendly policies, and robust infrastructure are essential to attract and retain international partnerships.
This is a defining moment for Balochistan and Pakistan. With prudent management, the Reko Diq project could symbolize progress and prosperity, transforming Balochistan into an economic hub and placing Pakistan among the leading global mining players.