Massive gold and copper yields are expected from the multi-phase Reko Diq project, with Balochistan poised to reap substantial royalty revenues, reported 24NewsHD TV Channel on Thursday.
The National Assembly was informed on Thursday that the project could bring in over $75 billion in total earnings, making it the largest foreign investment in Pakistan’s history.
Parliamentary Secretary Mian Khan Bugti responded during the question hour to a query from MNA Mirza Ikhtiar Baig, stating that negotiation teams from both countries were actively engaged and the process was moving forward. “Once the talks reach a conclusive stage, the House will be duly informed,” he assured lawmakers.
Bugti informed the National Assembly that discussions are ongoing with Saudi Arabia regarding potential investment in the Reko Diq mining project. So far, two meetings have taken place, but no final agreement has been signed yet.
In response to a supplementary question from MNA Shagufta Jumani, Bugti clarified that no fixed timeline has been established for finalizing the investment. However, he emphasized that the project was of national importance and efforts were being made to accelerate the investment phase.
Answering another question from MNA Asad Niazi, Bugti said that both Port Qasim and Gwadar could be used for transportation linked to the Reko Diq project.
Providing a detailed update to the House, the Energy Minister also shared the projected benefits, costs, and expected outcomes of the Reko Diq project. He stated that the project, which spans 37 years, would bring substantial financial benefits to both Balochistan and Pakistan. Under the agreement, Balochistan is entitled to a 25% share in the project, with overall revenues projected to exceed $75 billion.
He further informed that the Balochistan government will earn from taxes and royalties, including advance royalty payments during the development and construction phases. Specifically, Balochistan received $10 million in the first year and is expected to receive $57.5 million in the second year. Additionally, annual advance payments of $10 million will be made until commercial production begins, capped at $50 million total.
He added that the Reko Diq project represents the largest Western investment in Pakistan’s history. The federal government will also receive an additional 1% profit from the project.
According to the feasibility report, the first construction phase will run from 2025 to 2028, with production beginning in 2028. The second phase will follow from 2028 to 2033, with output expected to start in 2034.
During the initial production phase, the project aims to extract 300,000 ounces of gold and 200,000 tons of copper annually. In the second phase, the targets rise to 500,000 ounces of gold and 400,000 tons of copper per year.
During construction, Balochistan will receive 1% of the total project cost, with $57 million allocated for the first phase and $33 million for the second. The provincial government has already received a $10 million installment. After commercial production begins, Balochistan is expected to receive 0.4% of annual revenues, which could reach approximately $25 million per year.
Environmental protection, community development, job creation, and local business opportunities are all integral to the Reko Diq framework. A monitoring system has been established to ensure fair distribution and transparency.
The House was also informed that $5.3 million has already been spent on education, health, skill training, and clean water initiatives since 2022.
Reporter: Rozina Ali