Minister for Petroleum Musadik Malik on Tuesday stated that the federal cupboard has not given approval to the sale of a 15% stake within the Reko Diq venture, price $540 million, to the Kingdom of Saudi Arabia (KSA) below the Inter-Governmental Commercial Transactions Act.
In an announcement, the minister rejected experiences concerning the event, saying that no deal has been reached with Saudi Arabia for the Reko Diq venture but.
However, he stated, the federal government is certainly having “constructive discussions” with the dominion on this regard. “So far, no talks with Saudi Arabia have been finalised nor has any approval been given from the cupboard,” he added.
Furthermore, the minister stated, a deal could be reached with Saudi Arabia concerning Reko Diq shares subsequent yr.
Earlier within the day, it was reported that the federal cupboard had given a go-ahead to the much-awaited sale of a 15% stake of the federal authorities within the Reko Diq venture.
“The KSA will make fee in two installments. In the primary section, the KSA will purchase a ten% stake within the venture, for which $330 million might be transferred to Pakistan. The remaining 5% stake might be bought within the second section for $210 million,” the report acknowledged.
Apart from buying 15% shares, it added, the Saudi Fund for Development has pledged $150 million to assist the event of mineral sources in Balochistan.
The Reko Diq venture is among the many world’s largest undeveloped copper-gold mines. The Reko Diq Mine is a deliberate mining operation, situated close to the Reko Diq city of Chagai.
Reko Diq has estimated reserves of 5.9 billion tonnes of ore grading 0.41% copper and gold reserves amounting to 41.5 million oz, and a mining lifetime of not less than 40 years.
Barrick Gold owns a 50% stake within the mine, whereas federal and Balochistan governments collectively personal the remaining 50% shares, guaranteeing substantial advantages for the area.
