Barrick Slows Reko Diq Development as Security Risks Extend Project Review
Barrick Delays $5.6 Billion Reko Diq Copper-Gold Project in Pakistan Amid Rising Regional Security Concerns
Barrick Mining Corporation (TSX: ABX, NYSE: B) has announced plans to slow development of the Reko Diq copper-gold project in Pakistan’s Balochistan province and extend its project review period, citing heightened regional security risks linked to tensions in the Middle East.
The decision, first reported by the Financial Times, introduces additional uncertainty around the timeline for one of the world’s largest undeveloped copper-gold deposits.
Barrick’s shares traded slightly lower following the announcement, moving within a narrow range on the New York Stock Exchange.
The company currently holds a market capitalization of approximately $67 billion, reflecting its status as one of the world’s leading diversified mining companies.
Extended Review Reflects Heightened Risk Assessment
The slowdown follows preliminary findings from a strategic review launched last month to evaluate all aspects of the project, including capital allocation, execution timelines, and risk exposure.
Barrick confirmed that the review period will now be extended by 12 months starting in July, primarily due to escalating security concerns associated with regional instability involving Iran.
Barrick has been developing the project in partnership with the governments of Pakistan and the province of Balochistan for several years.
The project was initially scheduled to begin production in 2028, subject to financing and final development approvals.
Phase One development alone is estimated to require more than $5.6 billion in capital investment, underscoring the project’s scale and complexity.
Strategic Importance of the Reko Diq Deposit
Once operational, the Reko Diq mine is projected to become a long-life, Tier 1 copper and gold operation, generating substantial economic returns over its lifespan.
Key projections include:
- More than $70 billion in free cash flow
- Approximately $90 billion in operating cash flow
- Estimated mine life: 37 years
- Copper reserves: About 15 million tonnes
Barrick has identified Reko Diq as a cornerstone asset in its strategy to expand its global copper portfolio and position itself as a leading Tier 1 copper producer, particularly as demand for the metal rises due to electrification, renewable energy, and infrastructure development.
The extended timeline will allow Barrick to conduct a more comprehensive risk assessment and project optimization process, including refining construction sequencing, financing structures, and operational planning.
Despite the delay, the company continues to view Reko Diq as a strategically critical asset with long-term value potential for both investors and the government of Pakistan.
