ISLAMABAD: Barrick Mining Corporation will slow down development of Pakistan’s Reko Diq copper-gold project and continue its security review through mid-2027, the global mining firm said on Thursday.
In Feb., Barrick had announced that it was reviewing all aspects of the project in light of the escalation of security risks and increased attacks in Pakistan’s southwestern Balochistan province.
The review announcement followed coordinated attacks by separatist militants, who stormed schools, banks and security installations, killing nearly 50 people in several districts across the mineral-rich province.
The Reko Diq gold and copper project in the region is owned 50 percent by Barrick, 25 percent by three Pakistani federal state-owned enterprises and 25 percent by the provincial government of Balochistan.
“Following the preliminary findings of the review and the further escalation of security issues in Pakistan and the region, the Company considers it necessary to slow the development activity and continue the project review until mid-2027,” the Canadian miner said in a market update.
“The continued review will allow the Company to assess in a comprehensive manner the evolving security situation, capital requirements, project financing, project scope and timeline.”
The project, expected to begin production in 2028, is central to Pakistan’s hopes of boosting mineral exports and attracting foreign investment into its underdeveloped mining sector. Despite heightened threats in Balochistan, development linked to the project continues in other parts of the country.
In its statement, Barrick said there could be significant increases to the previously disclosed total estimated capital budget and timeline for the project.
The previously disclosed total estimated capital cost of Reko Diq Phase 1 was between $5.6 billion and $6.0 billion, and of Phase 2 was between $3.3 billion and $3.6 billion, with first production targeted by the end of 2028.
“Barrick will continue to monitor the security landscape closely in consultation with its joint venture partners and will provide a further update to the market following the conclusion of its review,” the mining company said.
