Pakistan-Saudi Arabia negotiations on copper-gold mine in final stage: minister

Negotiations between Pakistan and Saudi Arabia on the Reko Diq copper-gold mine — one of the largest undeveloped projects in the world — are in the final stages, Pakistan's Minister for Petroleum Dr Musadik Malik said on Wednesday.

He said officials were also in negotiations with Saudi Arabia on water projects.

The Reko Diq copper-gold mine is located in Balochistan's Chagai district and is owned 50% by Canadian mining company Barrick Gold Corporation, 25% by the federal government and 25% by the Balochistan government. It is set to begin production in 2028.

Saudi firm Manara Minerals Investment Company, which is backed by the Saudi Development Fund, plans to invest at least $1 billion in the project by acquiring a minority stake, according to a Bloomberg report from earlier this year.

Barrick Gold's Chief Executive Officer Mark Bristow had said last year that the company would support any decision of the Pakistan government with Saudi Arabia but would not dilute its equity in the project.

'No notice on delay in Iran pipeline project'

Speaking to the media on Wednesday, Malik rejected reports that Pakistan had received a notice from Iran for paying PKR 18 billion for delays in the Iran-Pakistan gas pipeline project.

"There is still no estimate from either side about the penalty on Pakistan over the project," he clarified.

The petroleum minister said four to five government teams were working to provide relief to masses on electricity prices, which have skyrocketed in recent years, while other teams were working on circular debt and capacity payments issues.

Malik said a report for setting up a greenfield refinery in the country would be released by December.

He also hinted that the government might introduce a seasonal tariff to fulfil the gas shortage in winter and deal with capacity payments in the power sector.

The government had taken steps to increase investment in oil and gas exploration and ensure timely payments to E&P companies, succeeding at clearing 95% dues owed by SNGPL, he added.

The minister further said price rationalization is essential to control gas prices, explaining that well-head gas price is PKR 570 per mmBtu while pipeline and RLNG prices are PKR 1,280 and PKR 3,600 per mmBtu, respectively.