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.
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.
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.
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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.
😭