Canadian mining company Barrick Gold is negotiating with the International Finance Corporation and other entities to help raise $2 billion for the first phase of the Reko Diq copper and gold project in Pakistan.
The project, in which Barrick holds a 50 percent stake, is estimated to cost $5.5 billion in the first phase.
Reko Diq, one of the largest undeveloped copper mines globally, is also 50 percent owned by the Pakistani government. Saudi Arabia is considering purchasing a portion of Pakistan’s stake in the project.
Barrick recently expressed openness to welcome Saudi Arabia as a partner in the mega project. CEO Mark Bristow said that Barrick won’t dilute its equity but was open to Saudi Arabia’s Public Investment Fund buying out Pakistan’s equity.
It is no secret that Saudi Arabia is looking for a stake in the global mining game with access to strategic minerals as the Kingdom looks to diversify its economy away from oil and the dollar. The kingdom is ready to splash some big cash, meanwhile, the Canadian firm looks to ease cash constraints.
The Reko Diq project will commence production in 2028.
