Participation of state-owned firms in the Reko Diq project
News sources say that three State-Owned Enterprises (SOE) have signed final agreements to take part in and buy 8.33% of the reformed Reko Diq project. This happened in Islamabad.
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According to the filing with the Pakistan Stock Exchange (PSX), three SOEs, Oil and Gas Development Company Limited (OGDC), Pakistan Petroleum Limited (PPL), and Government Holdings Private Limited, have joined forces to buy the 8.33% stake in the project and make any additional capital investments that may be needed and/or possible. In this case, the OGDCL has given its approval for notices to be sent out calling for an extraordinary general meeting to ask the company’s shareholders for permission. After the agreement between the government of Pakistan, Baluchistan, and Barrick Gold in May of last year, this is the second big step forward.
The new agreement between the multinational company, the federal government, and the Baluchistan government says that Barrick Gold will explore the mining site and take 50% of the processed minerals. The other 50% will be held by Pakistan and split evenly between the federal government and the Baluchistan government.