Saudi Arabia is taking a bold step to diversify its economy beyond oil by entering the mining sector in Pakistan. Through its investment vehicle Manara Minerals—a joint venture of Ma’aden and the Public Investment Fund (PIF)—Saudi Arabia is preparing to acquire a significant stake in the Reko Diq copper and gold mine, one of the world’s largest undeveloped deposits.

This landmark deal, estimated at $500 million–$1 billion for a 10–20% stake, positions Saudi Arabia as a long-term player in the global minerals market and gives Pakistan a powerful partner to unlock the potential of this $7 billion project.

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Why Reko Diq Matters

Located in Balochistan, the Reko Diq mine is considered one of the world’s most valuable copper-gold reserves. The project, led by Barrick Gold, has the potential to transform Pakistan’s mining industry while boosting regional development.

• Production Timeline: Expected to begin operations by 2028.
• Capacity: Initial phase aims for 200,000 tons of copper annually, with a second phase doubling output.
• Economic Impact: Projected to generate $74 billion in free cash flow over 37 years.

For Pakistan, this isn’t just about minerals—it’s about jobs, infrastructure, and revenues that can uplift one of the country’s most underserved regions.

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Saudi Arabia’s Strategic Vision

The investment aligns with Saudi Vision 2030, the Kingdom’s roadmap to reduce reliance on oil and expand into sustainable industries. By investing in copper, a critical resource for clean energy and industrial growth, Saudi Arabia secures a strong foothold in the global transition toward green technologies.

For Saudi Arabia, Reko Diq offers:

• Diversification into mining and minerals.
• Long-term returns from one of the largest copper-gold projects globally.
• Regional influence, strengthening ties with Pakistan.

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What Pakistan Gains

For Pakistan, Saudi involvement brings more than money. It adds credibility, stability, and global recognition to a project that has faced decades of delays and disputes. Key benefits include:

• Foreign investment inflows of up to $1 billion.
• Infrastructure development in Balochistan.
• Employment opportunities for thousands.
• Strategic partnership with a Gulf ally.

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Current Status of the Deal

Negotiations are in advanced stages, with discussions focusing on valuations and purchase structures. Reports suggest Saudi Arabia could acquire its stake directly from the Pakistani government’s 25% shareholding in the project. Both sides are optimistic about finalizing the deal soon.

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Conclusion

Saudi Arabia’s planned investment in the Reko Diq mine is more than a financial transaction—it is a strategic partnership that underscores shifting global priorities. For Saudi Arabia, it means stepping into the future of minerals and clean energy. For Pakistan, it means unlocking the potential of one of its richest natural assets.

If finalized, this deal could reshape the economic and geopolitical landscape of South Asia and the Middle East, making Reko Diq a true symbol of shared prosperity.

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