Pakistan, Saudi Arabia moving towards finalisation of Reko Diq deal

• Gulf nation will procure 10% stakes in first stage.
• Foreign exchange will be brought into Pakistan.
• Revised valuation of project shares in works.

ISLAMABAD: Pakistan and the Kingdom of Saudi Arabia (KSA) are moving towards finalising the nitty-gritty of the multibillion-dollar Reko Diq project in the next few months, The News reported on Saturday.

In another relevant development, the revised valuation of the project has been accomplished and both sides are at the stage of finalising the nitty-gritty of the project.

The Gulf nation will procure 10% stakes in the first stage, followed by an increase in future.

A person familiar with the ongoing negotiations told the publication: "One of the major stumbling blocks in finalising the project was resolved amicably, as Saudi Arabia wanted to keep a bank account outside Pakistan for utilising the foreign exchange amount in case of procurement of any machinery.

Now both sides have agreed that the foreign exchange would be brought into Pakistan, and both sides have also struck a broader agreement to this effect," the top official said.

When asked about any time frame for striking the deal, the official said it could not be ascertained yet, but the deal was heading towards the final stages and could be struck anytime in the near future.

To another query about the revised valuation of project shares, the source said the project was in its preparatory stage but the revised exercise resulted in an improved valuation of the shares.

The results of the updated valuation have been shared with the other side and negotiations are reaching the conclusion stage, said the official.

This comes after Saudi Arabia Mining Minister Bandar Alkhorayef confirmed that kingdom’s mining company Manara Minerals was looking at investing in Pakistan's Reko Diq mine, saying that the Saudi Development Fund could contribute over $100 million to Pakistan's mining infrastructure.

"Part of what we are looking at is how we can help Pakistan also in some infrastructure," Alkhorayef said in an interview on the sidelines of the Future Minerals Forum in Riyadh.

"Without that infrastructure, the economics of the deal are not attractive, so through the Saudi Development Fund we are thinking about how we can finance it."