Processing location emerges as a key sticking point in talks for Manara’s Reko Diq acquisition: Ongoing negotiations for PIF-backed Manara Minerals’ 15% stake acquisition in Pakistan’s Reko Diq copper and gold mining project have shifted to where the extracted metals will be processed, with Pakistan maneuvering to retain some downstream activities in-country, Pakistan’s Energy Minister Musadik Malik tells Bloomberg. Other bidders are also being considered for the sale that is expected to be finalized within the next five months, Malik said.

Background: Saudi reportedly secured approval from Pakistan’s cabinet to acquire a 15% stake in the Reko Diq copper-gold mining project for USD 540 mn last month, according to unconfirmed Pakistani media reports. Manara Minerals — a JV between the Public Investment Fund and Ma’aden — has been working to acquire a 15% stake in the Reko Diq project since August, with reports at the time suggesting that the offer could be worth USD 1 bn.

Where (we thought) things currently stand: Malik told Reuters last week that Manara could finalize its investment in Reko Diq within the next two quarters, adding that financial, commercial, and legal due diligence had been completed and that both parties had agreed to a valuation framework, clearing the way for pricing negotiations.

Why it matters: Reko Diq — one of the world’s largest copper-gold mines — is largely undeveloped. The mine is 50% owned by Barrick Gold, 25% by Pakistan’s federal government, and 25% by Pakistan’s Balochistan province. The estimated total project cost is between USD 6-6.5 bn, requiring USD 3-3.5 bn in debt financing. The copper-gold mine is expected to generate some USD 74 bn in freecash flows over the next 37 years when accounting for long-term price projections, Reuters said citing media statements by joint project owner Barrick Gold CEO Mark Bristow.

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