Karachi: The Reko Diq copper and gold project, one of the world’s largest underdeveloped mining ventures, is poised to deliver an estimated USD 74 billion in free cash flow over the next 37 years, according to Barrick Gold CEO Mark Bristow. This forecast is based on consensus long-term prices and highlights the project’s potential to significantly boost Pakistan’s struggling economy.
Partnership Overview
Barrick Gold owns a 50% stake in the Reko Diq project, while the governments of Pakistan and Balochistan collectively hold the remaining 50%. The project, located in Balochistan, is expected to have a transformative impact on the region and the national economy through dividends, royalties, and taxes.
Read: Economic ties strengthened as Pak, KSA advance Reko Diq talks
Production Timeline and Investment
The mine is expected to begin production by the end of 2028. The first phase, costing an estimated USD 5.5 billion, will produce 200,000 tons of copper annually and is set to be completed by 2029. A second phase, estimated at USD 3.5 billion, will double production capacity.
The project has a lifespan of 37 years, but Bristow indicated that further upgrades and expansions could extend its operational period.
Economic Impact and Infrastructure Development
With Pakistan’s foreign reserves hovering around USD 11 billion, the USD 74 billion in free cash flow from Reko Diq is expected to provide much-needed financial relief. The project is also spurring additional infrastructure development, with Barrick engaging with railway authorities and infrastructure providers to revamp the coal terminal at Port Qasim in Karachi to support copper transportation and export.
Saudi Interest and Regional Opportunities
Saudi Arabia’s Manara Minerals is in discussions to invest in the Reko Diq mine, with potential agreements expected within the next two quarters, according to Petroleum Minister Musadik Malik. Manara’s executives visited Pakistan in May last year for talks on acquiring a stake, and discussions with other Gulf countries regarding mining opportunities are also underway.
Read: Gold deposits worth PKR 800 bn discovered in Attock, Punjab
Project Milestones
The Reko Diq project’s development is progressing as planned. Fencing, accommodation, and surveys have already been completed, and the timeline remains on track.
This landmark project not only highlights the strategic partnership between Barrick Gold and Pakistan but also marks a significant step forward in leveraging the country’s natural resources for long-term economic stability.