The ambitious Reko Diq copper-gold mining project in Balochistan may face further delays as the project operator, Canada’s Barrick Mining, extends its formal review period through early 2027. Citing the critical need for regional security enhancements before embarking on a full construction schedule, the company has slowed down development. Further complicating domestic expectations, concerns have emerged over the operator’s reported plans to process only 30% to 35% of the copper-gold output within Pakistan, potentially routing the remaining raw concentrate to its facility in Australia rather than maximizing local value addition.
Thank you for reading this post, don't forget to subscribe!The delay comes alongside a substantial surge in projected capital expenditures for the massive infrastructure endeavor. The estimated cost for Phase 1 has escalated from $4 billion to $5.6 billion, while Phase 2 is projected to require an additional $3.5 billion, pushing the total capital requirement to roughly $9.1 billion. Canada’s Barrick Mining holds a 50% stake in the conventional open-pit operation, with the remaining half split equally between the Balochistan provincial government and three Pakistani state-owned entities: Pakistan Petroleum, Oil and Gas Development Company, and Government Holdings Private.
Once fully realized, the project holds immense long-term economic weight. Initial capacity is designed to process 45 million tonnes of ore annually, which is expected to double to 90 million tonnes upon the completion of Phase 2. While an updated feasibility study revised the mine’s operational lifecycle to 37 years to account for the higher throughput, ongoing exploration could potentially extend its lifespan up to 80 years. Over its initial 37-year run, Reko Diq is projected to generate $74 billion in free cash flow and create 7,500 jobs during peak construction alongside 4,000 permanent operational positions.
Story by Afshan Subohi
