Saudi Arabia is in talks with Pakistan to acquire a 15 percent stake in one of the world’s largest undeveloped copper and gold resources, a Pakistani government minister has said.

RIYADH

Negotiations between the two countries started last year over a minority stake in the Reko Diq copper and gold mine project in Pakistan’s southwestern Balochistan province.

Media reports in Pakistan said the federal cabinet had approved the sale of a 15 percent stake for $540 million and that the Saudi Fund for Development will provide $150 million to support mineral development in the Balochistan area.

However, Pakistan’s petroleum minister Musadik Malik said the deal has not been approved yet. 

“The matters with Saudi Arabia on Reko Diq are moving forward positively and will be finalised soon,” he said in a statement on X. “A price negotiation committee is handling the matters to ensure negotiations proceed in a timely fashion to seal the deal soon. However, it has not been finalised yet.” 

The mine is 50 percent owned by Canada’s Barrick Gold, one of the world’s largest gold mining companies. 

Three federal state-owned enterprises in Pakistan own 25 percent and the Balochistan government owns the remaining 25 percent.

Reko Diq is believed to have one of the world’s largest reserves of copper and gold, estimated at 5.9 billion tonnes of ore grading 0.41 percent copper and 41.5 million ounces of gold reserves, with a projected mining life of at least 40 years.

Barrick said 2028 is targeted for first production from the mine, which is expected to have a combined process capacity of 90 million tonnes per annum.

Demand for copper, an important component in electric vehicles and advanced battery systems, has soared from just over $2 per pound in early 2020 to $4.04 per pound on January 3 2025.

Minerals Development Oman (MDO) has resumed exporting copper from the Lasail mine in Sohar with its first shipment in nearly 30 years. 

The mine, developed by Oman Mining Company, a subsidiary of MDO, produces an average of 500,000 tonnes of copper ore per year. 

MDO said it also plans to initiate operations at the Al Baydha mine by 2026. 

Both mines have a reserve of 2.78 million tonnes of copper ore, MDO said. 

The company aims to carry out further exploration in surrounding areas to increase reserves and long-term production sustainability. 

MDO CEO Mattar Al Badi said Oman has been a centre for copper mining for over 3,000 years.

“The sector has made remarkable strides in exploration and extraction, enabling us to reopen dormant mines and maximise their value,” he said. 

Another MDO subsidiary, Mazoon Mining, broke ground on Oman’s largest integrated copper concentrate project in November. Spanning 20 square kilometres, the Mazoon Copper Project in Al Dhahirah has estimated reserves of 22.9 million tonnes of copper ore. 

Copper is a key component in electric vehicles, advanced battery systems, renewable energy and data centres for artificial intelligence.

Demand has soared in recent years. Several abandoned mines around the world have been restarted in a bid to capitalise. 

The price of copper peaked at $10,597 a tonne in May 2024, its highest in two years, but slipped to $8,652 by the end of December on the back of weaker demand in China. 

In September, Goldman Sachs lowered its 2025 copper price forecast to $10,160 per tonne, down sharply from a previous estimate of $15,000 per tonne. In addition to China, it said global copper inventories have risen to their highest level in four years.

 Saudi Arabian Mining Company (Ma’aden) is offering upwards of 52 investment opportunities worth SAR4 billion ($1 billion) to boost private sector participation, a senior executive has said.

Investments worth SAR1.3 billion are already in the implementation phase, Abdullah Al Osaimi, senior vice president, procurement and business support, told CNBC Arabia.

Ma’aden, Saudi Arabia’s largest miner, has significantly increased local content in its procurement processes. Currently, 57.2 percent of its procurements involve local suppliers, compared to 51 percent last year.

The company aims to increase the percentage to ensure the long-term competitiveness of its operation and the mining sector, he said.

The mining major aims to expand its operations tenfold compared to 2020, underpinned by a 10-year investment strategy involving projects worth billions of riyals, Al Osaimi said.