ISLAMABAD: Barrick Mining Corporation has slowed development activity at the Reko Diq copper-gold project in Balochistan and is reviewing its construction plans, citing the need for improved security conditions before proceeding with the project’s full construction schedule.
Barrick President and CEO Mark Bristow said the company was revisiting the development programme because security conditions needed to improve before it could embark on a full construction schedule at Reko Diq.
The company has not announced a new construction timetable. In April, Barrick said it would continue its review until mid-2027 while assessing the evolving security situation, capital requirements, project financing, project scope and timeline. Development activity will continue under active management but at a reduced pace.
The development slowdown comes amid heightened security concerns in Balochistan, where the Reko Diq project is located in Chagai district near the borders with Afghanistan and Iran.
$8.83bn project investment
Barrick operates Reko Diq and holds a 50pc interest in the project. The Government of Balochistan owns 25pc, while three Pakistani state-owned enterprises hold the remaining 25pc.
According to Barrick’s updated feasibility study, total capital investment for the two-phase development is estimated at $8.83 billion. Phase I is estimated to require $5.6-$6 billion, excluding financing costs.
The joint venture shareholders approved the updated feasibility study in 2025 and conditionally approved Phase I development capital, subject to securing up to $3 billion in limited-recourse project financing. Barrick had previously targeted first production by the end of 2028.
The latest feasibility study estimates a mine life of 37 years. Barrick says the project will be developed as a large-scale open-pit mine with processing facilities producing copper-gold concentrate. The combined processing capacity of the two phases is expected to reach 90 million tonnes per annum.
Construction and employment
The project is expected to generate substantial employment during construction and operations, although the pace and timing of these benefits will depend on the revised development schedule.
Barrick has previously highlighted the project’s potential economic contribution to Pakistan and Balochistan. The company says the provincial government’s 25pc interest is fully funded, allowing it to receive dividends, royalties and other benefits without contributing financially to construction and operations.
The project is designed to be developed in two phases, with Phase I processing around 45 million tonnes of ore annually and Phase II expanding total processing capacity to around 90 million tonnes.
Barrick’s latest published project information indicates a 37-year mine life, while the company’s technical studies have identified potential for further resource growth and an extension of the operating period.
The latest security-related review therefore introduces uncertainty over the previously announced construction schedule, with Barrick expected to reassess the project’s timeline and development strategy as conditions evolve.
Story by Ali Ahmed
