Pakistan forms a negotiating committee to finalize the price and create a commercial agreement for selling its 15% part in the Reko Diq copper and gold mining project to Saudi Arabia.
The negotiation committee is officially authorized to evaluate the Saudi offer and conduct a review of the price discovery process being designed by the foreign consultants.
The Public Investment Fund of Saudi Arabia will also be consulted over the $150 million Saudi grant offer, the refund of the share of cash payments paid by Pakistan Minerals Private Limited, and the cash offer for a 15% stake acquisition.
The creation of a negotiation committee under a parliamentary legislation was approved last week by the Cabinet Committee on International Governmental Commercial Transactions.
This moves come weeks after Islamabad thought the Saudi offer of 15% of the shares was too low.
After a fresh feasibility assessment on the amount of gold and copper deposits is finished, it now anticipates a considerable price hike.
Through Manara Minerals, Saudi Arabia’s PIF proposes to buy the 15% interest in two installments.
The first 10% installment is to be paid at the time of the deal’s signature, and the second 5% installment is to be paid at the time of the investment decision.
The Canadian company Barrick Gold owns 50% of the joint ownership of the Reko Diq project, with the remaining 50% being split evenly between the governments of Balochistan and Pakistan.
Representatives from the Special Investment Facilitation Council (SIFC), the Petroleum Division, the Finance Division, the Law Division, and Pakistan Mineral Private Limited (PMPL), which owns the federal government’s interests, make up the bargaining group.
Prior to discussing the price with Saudi Arabia, Pakistan has hired outside consultants to do a project valuation. Within two months, according to officials, the international experts will finish valuing the 15% stakes.
