Pakistan minister says Saudi Arabia has not yet invested in Reko Diq project

Pakistan’s Federal Minister for Energy Ali Pervaiz Malik has informed the parliament that Saudi Arabia has not yet made any investment in the Reko Diq copper-gold project in Balochistan province.

In a written reply during question hour on Thursday, Malik said, “As of now, the Kingdom of Saudi Arabia has not made any investment in the Reko Diq Copper-Gold Project. However, technical teams from both sides are actively engaged and working together to explore potential investment opportunities in light of the updated feasibility study.”

Reko Diq is one of the world’s largest untapped copper and gold reserves, with an estimated 5.9 billion tons of ore containing 41.5 million ounces of gold.

The project is considered critical to Pakistan’s economic future, expected to bring in billions of dollars in revenue and create thousands of jobs.

Reports had earlier suggested that Saudi Arabia was close to acquiring a 15% stake in the project through Manara Minerals -- a joint venture between the Public Investment Fund (PIF) and Ma’aden -- for a proposed investment of $540 million. The deal, aligned with Saudi Vision 2030, is intended to help the kingdom diversify its economy and secure essential mineral resources.

It is worth mentioning here that the talks between the two countries continue, but finalizing any investment will require resolving security and logistical hurdles, along with ensuring fair benefits for Balochistan, where the mine is located.

Feasibility report

The updated feasibility study for the Reko Diq project outlines a 37-year mine life split into two phases. Phase 1, with an estimated capital cost of $5.6 billion (excluding financing and inflation), will be partly funded by up to $3 billion in limited-recourse project financing, with the rest covered by shareholder equity.

Phase 1 will process 45 million metric tons of ore annually starting in 2028, utilizing five of the 15 identified porphyry deposits—underscoring long-term growth potential. Phase 2, expected to begin by 2034, aims to double processing capacity to 90 Mtpa. It will be financed through project revenue, further financing, and shareholder contributions if needed.

Project partners have increased their total capital commitment to $627 million, inclusive of financing costs. Shareholder equity contributions are projected at $349 million, subject to adjustments based on final financing terms and inflation. Boards have granted in-principle approval to proceed with financing.

Higher global copper and gold prices are expected to offset rising project costs. Negotiations for project financing remain underway.