By Staff Reporter
KARACHI: Barrick Gold Corp. remains committed to its $7 billion Reko Diq copper mine in Pakistan, one of the world’s largest undeveloped deposits of the metal, the company’s interim chief executive officer said, pushing back against reports of a possible withdrawal.
The project in the restive province of Balochistan is held in an equal partnership between the Canadian miner and the government, with production slated to begin by the end of 2028. Barrick’s board has weighed splitting the company’s assets, a move that could include an outright sale of the Reko Diq mine and its African holdings, Reuters reported earlier this month, citing sources familiar with the company’s thinking.
“Barrick remains committed to the Reko Diq project and to Pakistan,” Mark Hill told Reuters on Tuesday. The remarks underscore the mine’s significance to both the company and Islamabad, which is counting on Reko Diq to anchor its push into the minerals sector as it seeks to attract more foreign capital. For Barrick, the site represents one of its largest long-term bets amid a global scramble for copper supplies.
Balochistan has long been plagued by frequent attacks by terrorists, making security a paramount concern for the operation. The project also hinges on upgrading a railway line to haul copper concentrate to the port of Karachi for processing overseas. Lenders including the International Finance Corporation and the Asian Development Bank are piecing together a financing package that exceeds $2.6 billion to support the development.
The Reko Diq project bolstered Barrick’s gold reserves by 13 million ounces in 2024. It’s projected to yield 200,000 metric tons of copper annually in its initial phase, with output doubling after expansion. Over a 37-year mine life, the venture is expected to generate more than $70 billion in free cash flow.
Sources familiar with the company’s thinking told Reuters this month that some board members and shareholders are concerned that exposure to riskier assets in Pakistan and Africa may be dragging on Barrick’s valuation relative to its safer North American operations, particularly as the company fields potential takeover interest. Barrick re-entered Pakistan in 2022 after settling a years-long legal dispute, positioning Reko Diq as a flagship investment for the country’s minerals ambitions.
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