Egyptian tycoon eyes stake in Barrick’s Reko Diq project

Egyptian billionaire Naguib Sawiris, the northern African country’s second-wealthiest person, is said to be seeking a stake in the $7 billion Reko Dick copper-gold project, jointly owned by Barrick Gold (NYSE: GOLD) (TSX: ABX) and Pakistan.

Sawiris, a major investor in gold producers such as Endeavour Mining (TSX, LON: EDV) through his La Mancha Holdings, told Bloomberg News the potential investment would allow him to expand his business in Pakistan.

Reko Diq, in the Balochistan region that borders Afghanistan and Iran, is considered one of the world’s largest undeveloped copper and gold deposits. 

The open-pit project has been over a decade in the making and has the potential to produce 200,000 tonnes of copper and 250,000 ounces of gold a year, beginning in 2028, for at least 40 years.

Barrick Gold has a 50% stake in the project, with the remaining 50% owned by the governments of Pakistan and the province of Balochistan.

Sawiris, who has amassed a fortune from investments spanning mining, telecommunications, hospitality and tourism, believes he has an advantage as potential investor in Reko Diq compared to others. 

“I know the country, I have friends here (…) We want to be on the Pakistani side, because I have been here for 25 years,” Sawiris said, adding that there were few other options to invest in.

Barrick chief executive officer Mark Bristow, who visited the project last week, said in September that he was seeing newfound “interest” from multinationals in Reko Diq. He added the project had also attracted interest from Saudi Arabia‘s sovereign wealth fund.

With a net worth of $5.61 billion, Naguib Sawiris trails his younger brother Nassef Sawiris, who is the wealthiest person in Egypt and the entire Arab world.