ISLAMABAD – Pakistani government okayed the sale of 15 percent stake in the Reko Diq copper-gold project – which is one of the world’s largest undeveloped copper and gold resources – to Saudi Arabia for $540 million. The federal government approved the major deal and the transaction will proceed under the Inter-Governmental Commercial Transactions Act. Kingdom will get Reko Diq shares in two phases. The maiden phase involves purchasing a 10pc stake for $330 million, followed by the second phase in which the remaining 5pc will be bought for $210 million. This deal is seen as a significant step towards fostering stronger economic ties between Islamabad and Riyadh. As per reports, the first payment of $330 million is expected to be transferred shortly after the completion of the initial stake acquisition The Saudi officials also expressed interest in exploring further mineral opportunities in the Chagai district, the largest district of Pakistan by area, located in the northwestern corner of Balochistan. Reko Diq remains in focus for being a key undeveloped copper-gold mines and holds substantial potential for the economy of South Asian nation. The project is jointly owned by the federal government and the Balochistan provincial government, each holding 50pc of the shares. The development of Reko Diq is expected to generate significant economic benefits, including job creation, infrastructure development, and long-term revenue for both the federal and provincial governments. The investment from Gulf nation shows growing international confidence in the mining sector and aligns with Saudi Arabia’s broader strategy to diversify its investment portfolio. This deal marks a new era of cooperation between Pakistan and Saudi Arabia, with both nations set to reap significant benefits from the strategic partnership. More from this category Copyright ©2024. Reproduction of this website's content without express written permission from 'Daily Pakistan' is strictly prohibited.