Manara to acquire stake in Barrick’s Reko Diq Project, reports Financial Times

Once the expansion is complete, the mine is expected to process over 90 million tonnes of ore annually.

Saudi Arabian mining fund Manara Minerals is poised to acquire a 10%-20% stake in the Reko Diq copper-gold project in Pakistan, which is being co-developed by Barrick Gold (NYSE: GOLD) (TSX: ABX), for an estimated $500 million to $1 billion, according to a report by the Financial Times (FT) on Tuesday.

Citing unnamed sources, the FT report states that Manara will purchase the stake from the Pakistan government, which, alongside the province of Balochistan, collectively owns 50% of the project.

The report follows Barrick’s recent announcement that it will retain its 50% interest in Reko Diq. According to the Canadian mining giant, the project is expected to generate approximately $74 billion in free cash flow over the next 37 years, based on consensus long-term prices.

Speaking to local media, Barrick's chief executive Mark Bristow revealed that an initial capital expenditure of $5.5 billion will be allocated for the development of the mine's first phase. During this stage, Reko Diq is projected to produce 200,000 tonnes of copper concentrate and 250,000 ounces of gold annually.

Bristow also noted that the initial phase is expected to be completed by 2029. A subsequent second phase, requiring an additional investment of $3.5 billion, aims to double production capacity.

Barrick has consistently emphasized that Reko Diq is one of the largest undeveloped copper-gold prospects in the world. The deposit features a high copper grade of 0.53%, meaning that for every tonne of ore mined, approximately 5 kg of copper can be extracted.

Upon completion of the planned expansion, the mine is anticipated to process over 90 million tonnes of ore annually, solidifying its position as a major player in the global copper and gold markets.

Stay tuned for further updates on the Reko Diq project as developments unfold.