Barrick Confirms Commitment to $7B Reko Diq Copper Project in Pakistan
Barrick Reaffirms Support for Reko Diq Copper Mine Amid Speculation of Asset Sale
Barrick Mining has reiterated its commitment to the Reko Diq copper mine in Pakistan, one of the world’s largest undeveloped copper deposits, following media reports suggesting the company might consider a withdrawal.
The $7-billion project, located in the remote and insurgency-affected western province of Balochistan, is a 50-50 joint venture between Barrick and Pakistani authorities. It is expected to begin production by the end of 2028.
Reports this month cited sources familiar with Barrick’s internal discussions, suggesting the board had considered splitting the company’s assets, potentially including an outright sale of Reko Diq and some African operations.
“Barrick remains committed to the Reko Diq project and to Pakistan,” interim CEO Mark Hill told Reuters.
Security and Infrastructure Challenges
Balochistan faces frequent attacks by separatist and jihadist groups, making security a major consideration for the mine. Additionally, the project requires upgrades to a railway line to transport copper concentrate to Karachi for export and processing.
A financing package exceeding $2.6 billion is being assembled by lenders, including the International Finance Corporation and the Asian Development Bank.
The Reko Diq project added 13 million ounces to Barrick’s gold reserves in 2024 and is projected to produce 200,000 metric tons of copper annually in its first phase, with output expected to double after expansion. Over 37 years, the project could generate more than $70 billion in free cash flow.
Strategic Importance for Pakistan and Barrick
Barrick’s statements highlight Reko Diq’s significance to both the company and Pakistan. The mine is a key pillar of Islamabad’s mineral strategy and one of Barrick’s largest long-term investments.
Sources indicate that some board members and shareholders have expressed concern that exposure to higher-risk assets in Pakistan and Africa could affect Barrick’s valuation relative to its safer North American operations, particularly amid potential takeover interest.
Barrick returned to Pakistan in 2022 after a prolonged legal dispute was resolved. Since then, the Reko Diq mine has become a flagship project for the country, supporting efforts to attract foreign investment to its minerals sector.
