Barrick Mining Corp remains firmly committed to developing the massive Reko Diq copper and gold project in Balochistan, its interim CEO said on Tuesday, dispelling reports suggesting a potential withdrawal from Pakistan.
The $7 billion project — one of the world’s largest undeveloped copper deposits — is jointly owned by Barrick and the Government of Pakistan. Production is expected to begin by the end of 2028.
Recent Reuters reports indicated that Barrick’s board had discussed the possibility of restructuring or splitting assets, including a potential sale of Reko Diq and certain African operations. However, interim CEO Mark Hill clarified: “Barrick remains committed to the Reko Diq project and to Pakistan.”
Security, Scale, and Financing
The project faces significant logistical and security hurdles. Balochistan continues to experience militant attacks, raising security concerns, while major infrastructure upgrades — particularly to railway lines — are needed to transport copper concentrate to Karachi for overseas processing.
Despite these challenges, lenders such as the International Finance Corporation and the Asian Development Bank are preparing a financing package exceeding $2.6 billion.
Reko Diq’s contribution to Barrick’s portfolio is substantial. In 2024, it added 13 million ounces to the company’s gold reserves. The mine is expected to produce 200,000 metric tonnes of copper annually in its first phase, with output projected to double post-expansion. Over its 37-year life cycle, the project is estimated to generate more than $70 billion in free cash flow.
A Cornerstone of Pakistan’s Minerals Strategy
Barrick’s renewed assurance highlights Reko Diq’s strategic value for both the company and Pakistan. Islamabad views the project as central to its efforts to attract investment into its mineral sector.
Some board members and investors, Reuters noted, have expressed concerns that exposure to higher-risk jurisdictions like Pakistan and parts of Africa could weigh on Barrick’s market valuation relative to its safer North American assets — especially amid potential takeover interest.
Barrick re-entered Pakistan in 2022 after a protracted legal dispute was resolved. Since then, Reko Diq has emerged as a flagship foreign investment, symbolising Pakistan’s push to unlock its mineral wealth and expand economic opportunities.
BY Reuters
