Body formed for Reko Diq deal

Pakistan has constituted a negotiation committee to finalise the price and draft a commercial agreement for the sale of its 15% stakes in the Reko Diq copper and gold mines project to Saudi Arabia. The negotiation committee has been authorised to undertake a review of the price discovery mechanism being developed by the international advisors and to assess the Saudi offer. It will also engage with the Public Investment Fund of Saudi Arabia to discuss the cash offer for 15% acquisition of the stakes, reimbursement of the portion of cash calls paid by Pakistan Minerals Private Limited, and the $150 million Saudi grant offer. Last week, the Cabinet Committee on the International Governmental Commercial Transaction approved establishing a negotiation committee under an Act of the Parliament. The development came weeks after Islamabad found the Saudi offer for 15% shares on the lower side. It now expects the price to increase significantly after the completion of a new feasibility study on the quantum of gold and copper reserves.