Pakistan wants to sell a big chunk of its 25 percent stake in the Reko Diq mine in exchange for $1 billion cash. Saudis are fetching and look like serious contenders to get it in the next few months. Are we so cheap?
“This is a big mistake. Our national interests are being subjected to arguably Asia’s biggest highway robbery since the Mughal Empire sold the subcontinent to the British in the 19th century. Soon, foreign players will start excavating rare metal reserves like Cobalt, Silica, and Lithium in the region. Those are crucial for kickstarting the semiconductor industry. China did it in Guangdong and Sichuan and then in Pakistan’s Saindak mines, but unfortunately, the Special Investment Facilitation Council (SIFC) is cute and blind,” a policy expert told ProPakistani.
Notably, the Metallurgy Corporation of China (MCC) has pocketed nearly 80 percent of the profits from the Saindak Copper-Gold Project in Chagai since COVID-19. Beijing expects to continue until the reserve depletes by 2037.
The Reko Diq Treasure And Who’s Ripping Us off
Pakistan’s mineral-rich province of Balochistan and the country’s northwestern regions are home to $6 trillion worth of precious rare-earth reserves besides gold and copper, which are projected to yield at least $200-$300 billion in annual revenue based on projected commodity prices on a 10-year average. By 2032, average annual production is expected to yield 430 million pounds of copper and 280 Koz gold, and looks like Pakistan won’t see much of it.
Global players like Barrick Gold and (maybe) Saudi venture Manara Minerals Investment Company are getting it for peanuts.
Reko Diq is one of the largest undeveloped copper-gold projects in the world, owned 50 percent by Barrick Gold, 25 percent by three federal state-owned enterprises, 15 percent by the Province of Balochistan on a fully funded basis, and 10 percent by the Province of Balochistan on a free carried basis.
As expected, over 70 percent of the total project capital expenditure and profits will be foreign-denominated. Meanwhile, the federal government will source 30 percent of the mine’s development cost and keep a small share of the fortune.
Riyadh’s Trick
Saudis are trying to offload what little dollars they have to end dollar dominance. Riyadh’s interest in buying into Reko Diq is seen as advantageous. The value of gold and copper is expected to rise in the coming decades while most analysts across the globe tip the dollar to crash. This will also improve the value of the Reko Diq mine significantly. Can’t we common folk agree that selling off such a valuable national asset for a relatively small sum is a big mistake that makes us poorer?
A $1 billion stake could actually be worth $40-50 billion to Riyadh. Saudis might as well invest then mine $100 billion worth of copper and gold in just 2 years, while Pakistan gets nothing.
The mine can contribute significantly to Pakistan’s overall exports if foreign players are phased out of control. Barrick Gold has it too easy, other players like Saudis will get it easier too.
Finance Ministry sources told ProPakistani that if a deal is agreed, Saudi Arabia will buy shares of Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings (Private) Limited – all listed entities – in the Reko Diq mine.
In this analyst’s view, the listed companies should re-evaluate their position on how to proceed in terms of expected profitability and multiple re-ratings as a result of the upcoming Reko Diq sale. The mine has a life of at least 40 years as a truck-and-shovel open pit operation with processing facilities producing a high-quality copper-gold concentrate. Authorities are giving it up for cheap and the local economy deserves better.
Akel bari kay behns pakistani are always going to reply behns
Baych do khabeeso.. sab bech do.
قومے فروختند و چہ ارزاں فروختند
There has to be some kind of campaign against government to stop this kind of shity deal… Its like selling thousands of worth of things to kabari for some patisaa…
Astonished to know
Stupidity + dishonesty
One day they will sell pakistanis too, just like they sell pakistani girls to saudi shehzadas
Who sell Pakistani girls to Saudi.You must be mistaken or crazy. Prove it !! Do not forget that you are selling everything to china and you are indebted to it to your neck . If you smart enough at least divide your debt to many countries
Kis dunya m rahty ho miyan. aap ko to jesy kush pata hi nh?
Sometimes , you need to come out of your stupid shell and analyze the whole scenario. You are better off getting the Saudi investment into the development of this mine to progress. Its would be capital expenditure, human resources, job creation, skill set enhancement and contribution to the economy etc. Anyways country isn’t in a position to invest in next 6 to 8 years too. With these funds you can kick start the process and benefit all. Please review your mindset and focus on betterment of the economy and public instead of negatively highlighting such projects.
Totally agreed, we lack mining skill. No one will come and work/invest in country as social work, everyone is there to earn money. Pakistan will get jobs and share in profit while doing no major investment as again we lack both technology and money.
If you are in minerals and mining business your comments have some weight and if don’t then you know nothing about the insights of the deal.
you have no idea what you are talking about. when you sell federal share of 25 % for 1billion dollar, how you expect to earn profit when giving up your share agaibstc1 billion dollar ? read article properly then comment.
Saudis had no mining skills either, but have learnt from on the job as agreed between the investor and the Saudi government to employ Saudis and train them. It all depends on the government of the day how they negotiate in country’s interest and its people. But sadly, our crook thieves in the government and bureacrats etc; have no love for the country nor its people, as is evident from the article, if confirmed.
Are you in minerals and mining business?
what kind of benefit you expect to derive with 1 billion dollar against a project which has an intrinsic value of trillions in the future. read the article first, analyze then comment.
I guess you are wrong. Yes, we do not have the skills, experience, resources or machinery but why not start with a little on our own? Instead of eyeing for a billion dollars and let others make trillions, we should rather use whatever skills we have and do on our own. Pakistani engineers living in the west or even foreign people can be sourced and given good packages. Machinery can be leased out. When we do know that we have so much worth of reserves, we can start learning and start making a few million dollars a year (instead of billions) and gradually catch up
This is in the best interest and people deserve it.
for selling a project worth trillions for 1 billion dollar. in which planet are you living ? exposes your intellectually corrupt mind.
😭
this must be escalated in major media channels and let the govt stop doing this.
Pakistan should look to back rupees value against proven gold & copper reserves of Rekodiq so that PKR currency value increases compared to other FCYs, specially against US$.
Backing a currency with proven gold and copper reserves can provide stability and confidence in its value, potentially strengthening it against other foreign currencies. However, implementing such a policy requires careful planning and management by Pakistan’s monetary authorities. They would need to establish a transparent system for valuing and certifying the reserves, ensure the reserves are adequate to support the currency, and maintain credibility in their commitment to the backing. Additionally, factors such as global economic conditions, market sentiment, and government policies would also influence the currency’s value.
To back the Pakistani Rupee (PKR) with Reko Diq gold reserves, Pakistan’s government and monetary authorities would need to take several steps, such as:
1. **Assessment of Reserves**: Conduct a thorough assessment of the gold reserves in Reko Diq to determine their quantity, quality, and value.
2. **Transparency and Certification**: Ensure transparency in the assessment process and obtain certification from reputable international organizations or agencies to validate the reserves.
3. **Legal Framework**: Establish a legal framework outlining the backing of the PKR with Reko Diq gold reserves, including the rights and responsibilities of the government, central bank, and other stakeholders.
4. **Reserve Management**: Develop a strategy for managing the reserves effectively, including measures to prevent fraud, theft, or misuse.
5. **Currency Peg**: Consider pegging the PKR to the value of the gold reserves, either partially or fully, to provide stability and confidence in the currency.
6. **Market Communication**: Communicate clearly with domestic and international markets about the backing of the PKR with Reko Diq gold reserves to enhance transparency and credibility.
7. **Monitoring and Adjustment**: Continuously monitor the gold reserves, economic conditions, and currency market dynamics, and be prepared to adjust policies as needed to maintain stability.
8. **International Relations**: Consider the implications of backing the currency with gold reserves on international relations, trade, and investment, and engage with relevant stakeholders to address any concerns.
Implementing such a policy would require careful planning, coordination, and monitoring to ensure its effectiveness and sustainability in supporting the value of the PKR.
Since Pakistan has and continues to fail to hold &/or increase value of PKR then the only option left to increase PKR value is to have it backed by Rekodiq gold reserves
Else, falling and declining PKR value keeps on adding & compounding the IMF debt burden on Pakistan in US dollars.
Decline in PKR value causes Inflation in Pakistan where general people get affected in BAU.
Pakistan must look, explore, find and adopt alternative means to have PKR currency value increased since only relying on export to increase hasn’t worked.
Its a Chat Gpt reply.
absolutely correct. great analysis. if only people could understand what have been expressed by you. It was Imran khan govt who renegotiated the deal and has been removed by interested crooks to meet their personal interest.
What sort of an analyst is The writer and pro Pakistani editorial board where figures like 6 trillion dollars r quoted without any basis…If you r gonna write on economy than learn from ppl like khurram Hussain of Dawn or Shabaz Rana that all numbers they present in their articles they source properly
These corrupt thieves are selling Pakistan like their own property for peanuts.
Is there any reason. We have all talent in hand. But Just commission is important than Pakistan
Article has not given full picture.
بد عنوانی اور رشوت خوری کا نتیجہ
For the last many decades we have been hearing that Pakistan is rich in so many type of minerals and natural resources. One of that was gas reserves at Sui that have been totally exhausted and now we are importing gas for our survivals.
I am not an expert to confirm or reject availability of natural resources in the country. But one thing is very clear that poor, lower and middle class has suffered badly since independence and we are over burdened with taxes to arrange salaries and perks of serving and retired elites.
Big guns are just concerned with their personal benefits and amassing wealth with both hand and at the same time claiming working for poor. This hypocrisy must come to and end. But who will take the lead in this noble cause because elite mafia is very powerful.
The agreement should be fair and in the favour of national interest instead of selling our precious minerals as a peanut.
This is totally absurd.Seems we Pakistanis and our national assets are so cheap in the eyes of the people who are forcefully ruling over us. This is totally unacceptable.
Ghareeb ki joru sab ki bhabi.
Unemployed Matric pass Analyst jub mashoor hony k liye koe Column likhta ha tu aisi he batain likhta ha.
Dear, Analyst get yourself enrolled in College at start studying economics, then write something related to economy of Pakistan.
Asslamualaikum, all Pakistani,s are burning and looking how they are selling all assets, but unable to do anything.when all these assets will finish then what they will sell.they will sell people of Pakistan and fly.these finance ministers are unable to run the country.a common man can run this.i can do it without any benefit.please do something if you can, jazak Allah khair
Mughals ny India ko nahi becha.
A lot of baseless analysis were made against the original Reko Diq deal and a CJ of Supreme Court gave the ‘heroic’ judgement to cancel it. That resulted in billions of dollars of penalty against Pakistan. Just remember, if Pakistan has no money to invest in exploration then the minerals will stay unexploited and we will have to pay penalty from our pockets. What is the point of dreaming about trillions of dollars? The next alternative is to get foreign investments, if you can get a better foreign investment then by all means let us all know and pressure the government to accept the better alternative investment, otherwise the government will just get the best it can. The partisan approach to economics is not going to do us any good. As we have already seen with the Reko Diq fiasco.
When it comes to nonsense greed, They can even sell the land of our country.
Yeh totally PTI ke Imrandu propaganda kar rahay hain.
Govt is not foolish to sell gold and copper mines at throwaway prices.
Yes we have to open up our country for attracting foreign investment in mining . We need foreign exchange and also mining experts. We are shortage of dollars and our exports are very low.We have to give some attractive benefits to foreign investors. Let first make our country financial strong by letting and attracting foreign investments in our country. Once we get strong and have dollars we can investment in so many other minerals availiable in our country. Pakistan is a very potential country,we have also got large agriculture products producing . The only problem is we are short of Dollars. If our dollars earning rises and our $ reserves increases, our Ruppes will become strong and you will see we will become most prosperous country .
Why Pakistan people are investing UAE and other countries. Because are investment laws and taxation system and whitening of money policy are not correct. We need to open up in all sectors. No question ask policy have to be Brought in. We have to show ways to investment . Development of realestate construction policy to be made fully liberal. Let people investment their money freely in developing building construction for offices,resenditial flats ,factories, infrastructures like roads n tourist hotels without asking source of income. We need to open up and attract investment . Let the people of Pakistan having money lying idel to bring it into country’s development. Open policy, if your investment if you are filers you pay 5% of your investment and if you are non filers you pay 10% of your investment. It should be like that way policy, we need to attract our people ,our expatriates to bring in finance and invest freely in development of Pakistan with no questions ask as for the investment done in Pakistan. Also Government immediately declare whitening of money at 10% income tax ,so that official capital is developed and is available for investment. Bank be allowed in investing in realeste for using them in building and for construction of offices and resential flats to be given on rent. All provinces should develop their master plan for all unsold government lands and offer n sell same to open public ,including expatriate Pakistanis, this can earn Billions for Provincial and central Governemt. These lands can be used for investment,agriculture,industry,town planning mining etc etc.
You have not discussed why Pskistan need 1 billion dollar so eagerly for this project from Saudis and why it cannot be arranged from its own sources.
Better if a brotherly Muslim country buyes, otherwise these corrupt officials may sell to any NON Muslim country.
Actually people of Pakistan are
not benefitted by such resources , only corrupt rulers.
Your comments are kinda cute but it shows how low you are interms of business, international relations and national interests … there are no brother here kid … will you work for your brother who pay you 1000 a month and treat you like slave or for multinational who pays you a million
ہیرونچی اپنے گھر کے برتن بیچتا ہے یہی پوزیشن اب ہمارے ھکمرانون کی ہے.
I am not sure if your figures are very exaggerated or not but I feel we were not able to run the mine in past 75 years. so lets get the investment and utilize that investment in developing the mine. 25% shares still remain with Balochistan. I feel its a fair deal may be the investment amount should be increased.
We can make nuclears bombs, fighter jets, cruise missile, drones and all. But we are not able to extract mineral …. seriously …. In india local private compnies are mining … they only people who are destrying pakistan are the one who are supposed to guard us … shameless people and there social media wing whi can sold there mothers and sisters if the money is good
Mr hanif do u know copper?
Do u have any speciality i geology?
If all u write is without any homework than pls shut up as 250miln people r at stake
How dare you raise your voice against Pak institutions they own pakistan and we are living here as slaves don’t speak or you will be one of the missing persons
All 250miln people in Pakistan should silently veto such notorious help from Saudis ,,,its time to say big NO to them and go for international bidding even if we have to ..but at a reasonable price which is by Barick s own evaluation of 20/25biln dlrs
Fr a 25%stake..any blunder decision shall b dealt by law
Rekodik area report should b published as 250miln people will know as its a gift of nature (Allah s.w..t)
this what happens when thieves are installed to govern the country and its backers does not have the country’s interest in their mind with short sightedness. People will against duchva shady deal, in sha Allah
This article seems like spreading misinformation, deliberately. Probably a proxy for something nefarious.
Just highlights the continual incompetency of previous and current government’s to sell you’re country’s assets is a sure indicator
The writer of article doesn’t know ABC of minineral Industry. Deposit was discovered by an Australian firm investing over 2 billion US,not by Pakistan. Under the international mining practises who so ever discovers a mineral deposit has the right to exploit. So claim of writer that Pakistan is selling Reko Dil is BullShit. All over world and Pakistan has legally accepted and legislate international mining practises. Our common man is misguided by such invoices, as calculating worth of earning doesn’t show expenditure, which country has no expertise nor finances.
Your country will sink because you sold it to the gulf arabs. Your so called muslim Brothers are allied with Modi except iran
This will not benefit us at all. the only beneficiaries are the Saudis and Barrick. What a stupid thing to say that we are better of by selling it for peanuts. We are an atomic power and I think we can handle the mining at the site. The main problem is the incapability, no will, subservient to the west, no brain and no interests for the people by our incapables governments now and in the past.
What a sad reality we are witnessing. We really needs strong, capable and independent leaders with another system.
Pakistan should be thankful to Barrick Gold for not pursuing the orbitration award. Your Parliament and Supreme Court was asked to clear the agreement before Barric Gold dropped its case. You don’t have abilities to complete such a big project. They investigated the feasibility and spent millions of dollars to bring the project to a level where now mining can be started. Stop negative propaganda. How the author knows that federal government share is being sold for $1b. Remember the Saudi Government gave a donation of $1b to Nawaz Sharif Government when he came to power in 2018. KSA has been helping Pakistan. Don’t malign them.
It is very astonishing that we don’t have any kind of technology which could extract the minerals from the depth of Earth as we are the nation who has atomic deterrent and we have also made the atom bomb but we are looking unable to extract our mineral deposit and we are looking towards others to get them out from the Earth
We should stop selling the nations silver and that too for peanuts .
Foreign investment should only be allowed either in loss making govt entities like pia, pak steel, energy sector , railways etc or in export oriented industries.
We simply cannot afford to have foreign investment in industries producing milk, water , soap or detergents and then remit their profits in foreign exchange.
When will we learn and make solid nationalistic policies for foreign and local investors .