Pakistan Petroleum Limited (PPL) has set its sights on potential collaboration with foreign sovereign investors for the Reko Diq Project.
In a notification to the Pakistan Stock Exchange, the company stated that “The Board of Directors (BoD) of Pakistan Petroleum Limited (PSX: PPL) has decided to evaluate a potential engagement with sovereign foreign investors with respect to the Reko Diq Project.”
It has also “decided to appoint advisors through its associated company M/s Pakistan Minerals (Private) Limited (PMPL) to assist in this regard”, disclosed the company’s filing to the Pakistan Stock Exchange on Thursday,
This development aligns with the company’s forward-looking strategy, signaling its intent to explore international partnerships for the Reko Diq Project, a venture of notable importance in the realm of natural resources.
PPL and OGDCL separately announced last year to subscribe to 33.3% shares of Pakistan Minerals Ltd and became part of a reconstituted project that saved Pakistan from an $11 billion penalty linked to the Reko Diq case.
The initial focus of the project was Phase 1, aimed at developing a 40 million tonnes per year ore-processing capacity, with construction scheduled to begin in the third year following the signing of definitive agreements.
According to the reconstituted agreement, Barrick Gold would spearhead the project with 50% ownership, while the remaining 50% would be equally shared between the federal government and the provincial government of Balochistan. With an estimated capital cost of around $7 billion, the project was poised for production between 2027 and 2028.