People visit a section sponsored by Canadian headquartered mining company Barrick Gold Corporation at the Prospectors and Developers Association of Canada (PDAC) annual conference in Toronto, Ontario, Canada March 7, 2023.
Speaking after reports suggested the company might consider withdrawing, Mark Hill told Reuters: “Barrick remains committed to the Reko Diq project and to Pakistan.”
The $7 billion initiative is located in Balochistan province and is structured as a 50-50 joint venture between Barrick and Pakistani government entities. First production is scheduled for late 2028.
Reko Diq is expected to yield approximately 200,000 metric tons of copper annually during its initial phase, with output planned to double following future expansion. The project is projected to generate more than $70 billion in free cash flow over a 37-year lifespan. In 2024, it contributed 13 million ounces to Barrick’s overall gold reserves.
Development work includes upgrading railway infrastructure to move copper concentrate from the remote site to the port of Karachi for overseas processing. Security measures remain a priority given the region’s history of separatist and militant activity.
A group of international lenders, including the International Finance Corporation and the Asian Development Bank, is arranging a financing package that exceeds $2.6 billion to support construction.
The project holds significant value for both parties. For Pakistan, Reko Diq serves as a cornerstone of the country’s efforts to expand its mining sector and attract foreign investment. For Barrick, the Toronto-based company, it represents one of its most important long-term growth opportunities.
Earlier this month, sources indicated that some Barrick board members and shareholders had discussed the possibility of separating certain assets, including Reko Diq and African operations, as part of a broader strategic review. Such discussions reflected concern that higher-risk jurisdictions might affect the company’s overall market valuation, particularly when compared to its lower-risk North American portfolio.
Despite those internal conversations, Barrick’s leadership has now publicly reaffirmed its dedication to advancing the Pakistani project on schedule. The company continues to work closely with federal and provincial authorities to meet technical, environmental, and community-related requirements.
Reko Diq is expected to create thousands of direct and indirect jobs and contribute substantially to local and national economic development once operational. Barrick has emphasized its focus on responsible mining practices and sustained engagement with communities near the project site.
The clear statement of continued commitment is seen as an important signal to investors, lenders, and government partners that Barrick intends to maintain its role in bringing the major deposit into production as planned.
