According to Mining.com, the Financial Times reported on Tuesday that Saudi Arabia's mining investment fund, Manara Minerals, is expected to purchase a 10%-20% stake in Pakistan's Reko Diq copper-gold project for $500 million to $1 billion.
Manara Minerals will acquire the stake from the Pakistani government. The Reko Diq project is being jointly developed by Barrick Gold and others.
On Monday, Barrick Gold stated that, based on long-term prices, Reko Diq is expected to generate $74 billion in cash flow over the next 37 years.
Barrick Gold CEO Mark Bristow said that the first-phase construction investment for the mine is estimated at $5.5 billion. During this phase, the Reko Diq copper mine is expected to produce 200,000 mt of copper concentrates and 250,000 ounces of gold annually. The Pakistani government and Balochistan province jointly hold a 50% stake in the project.
In an interview with local media, Bristow stated that the first-phase development of the mine is expected to be completed by 2029. The second phase will require an additional $3.5 billion investment and is expected to double production.
Barrick has consistently regarded Reko Diq as one of the world's largest undeveloped copper-gold deposits. The mine has increased its average grade to 0.53%, meaning 1 mt of ore can yield 5 kilograms of copper. Once the expansion is complete, the mine is expected to achieve a daily ore processing capacity of 90 million mt.
