[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]According to Bloomberg, Saudi Arabia has held negotiations with Canada’s Barrick Gold about investing in its Reko Diq copper mine in Pakistan, partially to introduce a partner with strong political influence in the cash-strapped South Asian economy.
As the Kingdom seeks to diversify its economy away from oil, Saudi Arabia is seeking a position in the global mining game with access to vital minerals. As the Canadian firm seeks to alleviate finance constraints, the kingdom is ready to spend big bucks.
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According to the source, Barrick Gold is in discussions with the Kingdom of Saudi Arabia’s Public Investment Fund about a potential interest in its Reko Diq copper mining project in Pakistan, which is a relatively untouched location for the global mining business. Bringing in the Saudis would not only alleviate Barrick’s finance difficulties, but it would also add a partner with significant political power in Pakistan.
However, Saudi Arabia’s massive pockets may make it tough for other heavy-duty miners looking for comparable agreements around the world.
The recent US and Canadian government ban on Chinese investment in precious metals enterprises has altered the investment landscape for mining companies seeking financing. This has given an opportunity for Middle Eastern countries like Saudi Arabia to fill the hole, and Pakistan is one of several potential candidates.[/vc_column_text][/vc_column][/vc_row]
