Reko Diq Copper and Gold Project to Boost Pakistan’s Economy with $74 Billion in Cash Flow
The Reko Diq copper and gold project in Pakistan is expected to generate approximately $74 billion in free cash flow over the next 37 years, according to Barrick Gold CEO Mark Bristow.
The project, which Barrick co-owns with the governments of Pakistan and Balochistan, is considered one of the world’s largest underdeveloped copper-gold deposits, and its development is expected to have a significant positive impact on Pakistan’s struggling economy.
Barrick holds a 50% stake in the mine, with the remaining ownership split between the federal and provincial governments of Pakistan.
After a long-running dispute that delayed the project, the mine is now expected to begin production by the end of 2028. The first phase will produce 200,000 tons of copper annually, at an estimated cost of $5.5 billion. This phase is scheduled for completion by 2029.
A second phase of the project, which will cost an estimated $3.5 billion, will double the mine’s production capacity. The mine’s current reserves are projected to last 37 years, though Bristow noted that, with potential upgrades and expansions, production could extend well beyond that.
The projected $74 billion in free cash flow from the project is expected to generate substantial dividends, royalties, and taxes for Pakistan, which is currently facing a shortage in foreign reserves, with only around $11 billion in its coffers.
Barrick is also working with railway authorities and infrastructure providers to upgrade the coal terminal at Port Qasim, located on the outskirts of Karachi, to facilitate the transport of copper both within Pakistan and for export.
According to Bristow, the project’s timeline is progressing as planned, with essential work such as fencing, accommodation, and surveys already completed.
In addition, Saudi Arabian mining company Manara Minerals is expected to make an investment in the Reko Diq project in the next two quarters, as revealed by Pakistani Petroleum Minister Musadik Malik.
Manara executives visited Pakistan in May of the previous year to discuss acquiring a stake in the project, and Pakistan is in ongoing talks with other Gulf nations about additional mining investments.
