Saudi Arabia Near Deal For Stake In Gold, Copper Mine Project In Pakistan's Troubled Province
Portfolio Pulse from Stjepan Kalinic
Saudi Arabia's Manara Minerals is in advanced talks to acquire a minority stake in the Reko Diq gold and copper mine project in Pakistan, currently co-owned by Barrick Gold Corp and the Pakistani government. The project, set to start production by 2028, could see Saudi Arabia taking over Pakistan's stake. Manara Minerals, a collaboration between the Saudi Public Investment Fund and Ma'aden, focuses on commodities investments and already holds a 13% stake in Vale's base metals business.
April 19, 2024 | 3:14 pm
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NEUTRAL IMPACT
Barrick Gold Corp's stake in the Reko Diq project may be affected by Saudi Arabia's potential acquisition of Pakistan's share, introducing a new strategic partner.
While the deal could dilute Barrick Gold Corp's effective ownership, the introduction of Saudi capital and strategic partnership might positively influence the project's development and future profitability. However, the exact impact remains uncertain until deal specifics are disclosed.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 75
POSITIVE IMPACT
Vale's existing partnership with Manara Minerals, which holds a 13% stake in its base metals business, could see indirect benefits from Manara's expansion into new projects like Reko Diq.
Manara Minerals' aggressive investment strategy, including its stake in Vale's base metals business, suggests a broadening of its commodities portfolio. This could enhance the value of its partnership with Vale, though the direct impact on Vale's stock might be limited in the short term.
CONFIDENCE 60
IMPORTANCE 40
RELEVANCE 50