Saudi Arabia is set to make a significant investment in Pakistan's Reko Diq copper and gold mine, a project poised to become one of the world's largest. Manara Minerals, the Saudi investment mining fund, is planning to acquire a 10-20% stake in the $9 billion complex, currently under development by Canadian mining giant Barrick Gold.

This move signifies Saudi Arabia's growing interest in the global mining sector, particularly as the world transitions to cleaner energy sources, which heavily rely on copper.

The Saudi fund is expected to purchase its stake from the Pakistani government, which holds a 25% ownership in the mine. The deal, valued between $500 million and $1 billion, is currently under negotiation and is expected to be finalized within the next six months, according to Pakistani officials.

Barrick Gold CEO Mark Bristow emphasized the project's transformative potential for Pakistan's economy. "This is a massive project, it will change the Pakistan economy. It's very big," he stated. He further highlighted the strategic benefits of Saudi Arabian involvement, emphasizing that "it brings a heavyweight regional partner into the mix."

The Reko Diq project, located in the southwestern Pakistani province of Balochistan, has faced significant challenges, including a long-standing insurgency by Baloch separatist groups. The project's developers are taking steps to address these concerns, including developing local infrastructure such as an airstrip and housing for workers.

The initial phase of the mine, estimated to cost $4.5 billion, will be funded through a combination of equity contributions from Barrick and the Pakistani government, and a debt consortium involving international financial institutions like the World Bank and the Asian Development Bank.

This investment comes at a crucial time for Pakistan, which is grappling with a severe economic crisis. The country has been heavily reliant on financial support from Saudi Arabia, including loan rollovers and oil facilities. The Reko Diq project is seen as a key step towards strengthening economic ties between the two countries and attracting further foreign investment to Pakistan.

Saudi Arabia, meanwhile, is keen to secure access to critical minerals like copper, which are essential for its ambitious industrialization plans. The Reko Diq investment aligns with the kingdom's strategy to diversify its economy away from oil dependence and establish itself as a major player in the global mining sector.

The project also holds significant geopolitical implications, given its strategic location in a region bordering Afghanistan and Iran. Successful development of the mine could bring economic prosperity to the Balochistan region and contribute to regional stability.