Manara Minerals plans to acquire up to 20% of copper-gold project

Logo of Manara Minerals Investment Co.

Manara Minerals Investment Co. plans to acquire a stake between 10% and 20% in the $9 billion Reko Diq copper-gold project in Pakistan, developed by the Canadian Barrick Gold Co., according to the Financial Times.

Manara Minerals will purchase the equity from the Pakistani government, which currently holds a 25% stake in the mine, for an amount between $500 million and $1 billion, securing a future production purchase agreement, the newspaper reported citing sources.

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The Reko Diq mine is expected to produce up to 400,000 tons of copper and 500,000 ounces of gold once the two phases of the project are completed.

Mark Bristow, CEO of Barrick Gold, said that the first phase of the mine will cost $4.5 billion, with $1.5 billion being financed by Barrick, additional funds from the Pakistani government, and the remainder coming from debt, including loans from the World Bank, the Asian Development Bank, and other lenders.

Bristow pointed out that the second phase of the mine, estimated to cost another $4.5 billion, will be funded by the revenues generated from the first phase. Some infrastructure is already being developed at the site in preparation for the upcoming construction of the mine.

This massive project will transform Pakistan's economy, the CEO noted, adding that Saudi investment would be beneficial to the project, bringing a strong regional partner into the venture.

In January 2023, Maaden signed a JV agreement with the PIF to establish a new company that will invest in mining assets globally to secure strategic minerals.

The new company aims initially to invest in iron ore, copper, nickel, and lithium sectors as a non-operating partner taking minority equity position.