Reko Diq: Value of Pakistan's Copper Deposits Soars Amid Surging Demand

[Riaz Haq]

The value of copper assets has surged 31.7% in the last six months, significantly surpassing the rise in tech stocks (20.2%) and gold (20%) in the same period. Growing demand for copper is mainly driven by increasing adoption of green technologies such as electric vehicles and growth in AI (artificial intelligence) data centers using the latest Nvidia chips. At current prices, the value of copper and gold deposits at Reko Diq in Balochistan province is nearly $200 billion.

Comparing Asset Price Appreciation Over Last Six Months. Source: Wa...

Interest in developing Pakistan's Reko Diq copper and gold mines has also grown with widening gap between demand and supply of the metals. Dennis Mark Bristow, CEO of the Canadian mining giant Barrick Gold Corporation, has said the Reko Diq mining project in Balochistan province is “absolutely on track” and would be able to begin production by 2028, according to news reports. Bristow said Reko Diq is an “enormous project” in which the company would be investing $10 billion.

Growing Copper Supply-Demand Gap

Clean Energy Driving Global Copper Demand. Source: IEA Via Nikkei

New infrastructure development is underway to connect Reko Diq with the national highway network. Barrick is building a link road to connect the mining project site with N-40 Quetta-Taftan national highway. Barrick chief says the company looks at the project as a “multi-generational investment,” adding that it wants all children under the age of 10 in the Reko Diq region to be in school by the end of 2024.  Similar infrastructure projects to support coal mining in Thar desert have brought socioeconomic improvements and human development for the local villagers. 

Reko Diq project is expected to employ thousands of workers during and after completion. Barrick has interviewed over 3,000 applicants from universities across Pakistan and selected 9 Baloch citizens, four women and five men, according to Bristow. “And they are now working on our mines in Argentina and they will go through a program of development and gaining experience from all our different operations around the world,” Bristow said, saying 30 such graduates would be employed in training programs with the company by the end of the year.  By Jan-Feb next year (2025), he said, 1,200 people would be employed, which would increase to 6,000 by 2026. “By the time we peak production, we will have employed 10,000 people,” Bristow told Arab News. 

Canadian mining giant Barrick Gold Corporation and the governments of Pakistan and Balochistan reached a deal to restart the Reko Diq mining project back in March 2022 on former Prime Minister Imran Khan's watch. Reko Diq is the world's 4th largest undeveloped copper-gold porphyry deposit with over 14 million tons of copper (worth $142 billion at $9,464 per ton) and 21 million ounces  (worth $50 billion at $2,367 per ounce) of gold. 

The project was abandoned in 2011 after a Pakistan Supreme Court bench headed by former Chief Justice Iftikhar Chaudhry canceled the mining license granted to Tethyan Copper Company (TCC), a joint venture between Canada's Barrick Gold and Antofagasta Minerals of Chile. TCC challenged the cancellation in the International Centre for Settlement of Investment Dispute (ICSID). On July 12, 2019, the ICSID Tribunal awarded TCC $5.894 billion plus interest of  $700,000 per day in damages against Pakistan. As of 1 March 2022, the award stood at $6.5 billion. The new agreement between Barrick Gold Corporation  and the governments of Pakistan and Balochistan does away with this award. It also increases the share of the project owned by Pakistan from 25% to 50%, brings in $10 billion investment, the largest single investment in the country, and creates 8,000 jobs. Reko Diq is part of the Tethyan metallogenic belt (TMB) that extends from the Balkans in Europe to Pakistan including Serbo-Macedonian, Anatolian, Takab, Kerman and Chagai metallogenic belts. It is believed to be rich in copper and gold deposits.

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[Riaz Haq]

ESIA for Reko Diq project submitted to Balochistan and Sindh govts - Newspaper - DAWN.COM

https://www.dawn.com/news/1878379

QUETTA: Reko Diq Mining Company (RDMC) has submitted a comprehensive document to the authorities in Balochistan and Sindh for review and approval after completing the Environment and Social Impact Assessment (ESIA) for the Reko Diq gold-cum-copper project in Chagai district.

The ESIA is a critical step in ensuring that RDMC operations adhere to the highest global environmental and social standards. Over a period of two-and-a-half years, a team of independent experts conducted extensive social and environmental studies in consultation with local communities, environmental groups and government stakeholders.

The studies evaluated the potential environmental and social impacts of the project, including air quality, water resources, biodiversity and the well-being of local populations. The mitigation hierarchy was integrated into the project design, with mitigation measures to be implemented as part of ongoing management plans.

“We are fully committed to the sustainable development of our project, and the completion of this ESIA represents a major milestone in ensuring that our operations will be environmentally responsible and beneficial to the communities where we work,” said Ashley Price, ESIA Manager for RDMC.

[Riaz Haq]

Reko Diq Mine Development Sparks Economic Potential For Pakistan - The Pinnacle Gazette


https://evrimagaci.org/tpg/reko-diq-mine-development-sparks-economi...

Recent agreements position Pakistan as a pivotal player in the global energy supply chain.
The Reko Diq mine development project promises to fundamentally reshape Pakistan's economic outlook by tapping extensive mineral resources and attracting substantial international investments. This pivotal venture has garnered significant interest, positioning Pakistan as a key player within the green energy supply chain.

Recent agreements emerged as game-changers, with Gentry Beach, the prominent US investor, and his company White Bridge Mining sealing partnerships aimed at leveraging Pakistan's immense mineral wealth. Beach highlighted, "Pakistan is home to extraordinary mineral wealth, and our investment is committed to unlocking its full potential through responsible mining and global partnerships.”

Located in Balochistan, Reko Diq is rich with gold and copper deposits, offering staggering economic benefits. The project expects to yield 400,000 tonnes of copper and 500,000 ounces of gold annually, creating approximately $74 billion in cash flow over the next 37 years. This projection reflects opportunities for job creation and foreign direct investment, much like the beneficial mining models observed in Chile and Australia.

Chile’s Codelco, for example, contributes nearly 10 percent of its GDP from copper mining, and Australia’s historical Gold Rush catalyzed significant infrastructure growth. Pakistan aims to emulate this success by encouraging foreign investments like the recent commitment from Saudi Arabia’s Manara Minerals Investment Company, which is poised to invest between $500 million to $1 billion. Such international partnerships signify rising confidence in Pakistan’s mining capabilities.

Mark Bristow, Barrick Gold's CEO overseeing the Reko Diq project, stated, "This project has the potential to transform Pakistan’s economy by fostering foreign investment and generating numerous job opportunities for its citizens.” His outlook emphasizes the long-term economic transformation expected from this mineral extraction endeavor.

Strategically, Pakistan is urged to adopt effective management frameworks and proactive policies to optimize Reko Diq’s potential. These include drawing lessons from Chile’s mineral royalties and reinvestment strategies alongside Australia’s focus on developing mining infrastructure. Such infrastructure investments—transport networks, processing facilities, and export hubs—are necessary to maximize Reko Diq's economic impact.

Transnational partnerships are also becoming feasible for Pakistan, as countries such as China express interest, along with various global mining corporations from Canada and Australia. This diversification effort is not merely about reducing dependency on one investor; it also aims to spur innovation within the mining sector and maintain competitive practices.

Given the projected high demand for minerals necessary for renewable technologies, Reko Diq stands at the forefront of this global energy transition. A 2021 Goldman Sachs report dubbed copper "the new oil,” highlighting its future significance as the world moves toward cleaner energy solutions. Such insights compel Pakistan to advocate for Reko Diq's role as central to the international supply chain for green technologies.

Alas, for the Reko Diq project to attain its ambitious goals, transparency must be at the forefront of its execution. This involves establishing clear guidelines for revenue sharing and project management, fostering trust among stakeholders, and maintaining public confidence. The government's commitment to stringent environmental regulations is also imperative, ensuring sustainable mining practices are prioritized and ecological disturbances minimized—assuring the livelihoods of local communities and the delicate environment of Balochistan remain intact.

[Riaz Haq]

Can Critical Minerals Redefine Pakistan-US Relations? – The Diplomat

Pakistan’s mineral wealth is vast but underdeveloped. The Reko Diq mine in Balochistan, one of the world’s largest untapped copper-gold reserves, holds an estimated 5.9 billion tons of ore. Similarly, northern regions like Gilgit-Baltistan and Khyber Pakhtunkhwa are believed to harbor lithium reserves, critical for renewable energy technologies. The Thar coalfield in Sindh, with 175 billion tons of lignite, further underscores Pakistan’s resource potential.

https://thediplomat.com/2025/02/can-critical-minerals-redefine-paki...

Pakistan and the United States, long bound by a security-centric relationship, may be on the cusp of a transformation as Islamabad explores proposals to attract the newly inaugurated Trump administration with stakes in its critical mineral reserves and other business ventures.

The prospect gained traction when U.S. businessman Gentry Beach, believed to be close to U.S. President Donald Trump, visited Pakistan earlier this month, promising billions in investments for mining and mineral projects.

“America cares about Pakistan. And I believe that together we can be very strong,” Beach said. “And we need Pakistan. You are our front face in this entire region, very important,” he continued, expressing optimism for bright future bilateral ties and economic cooperation between the two countries.

“Pakistan has something that America needs, and America has something that Pakistan needs,” Beach said, referencing the country’s mineral reserves. “That’s a wonderful situation for both of us to be in.”

It is too early to determine if Beach’s view aligns with a policy change in the Trump-led White House. His visit comes amid widespread concern in Pakistan about Washington’s disinterest in the country, following its withdrawal from Afghanistan and the geopolitical complexities surrounding the region.

The Pakistan-U.S. relationship has historically been dominated by security cooperation, with limited economic engagement. Bilateral trade between the two nations stands at a modest $6 billion annually, heavily tilted in favor of Pakistan exports.

For Pakistan, increased U.S. investment in its mineral sector could provide a much-needed economic boost, create jobs, and enhance infrastructure development. However, the success of this implausible pivot hinges on Pakistan overcoming significant geopolitical and domestic challenges to inflame Washington’s interest in a convincing manner.

[Riaz Haq]

Expanding US-Pakistan Relations Through Mining Projects
by Daniel Runde, the author of the book “The American Imperative: Reclaiming Global Leadership Through Soft Power”

https://static.jstribune.com/runde-expanding-us-pakistan-relations-...

https://static.jstribune.com/runde-expanding-us-pakistan-relations-...

Thus sourcing critical minerals must be treated as a US national security priority. China currently dominates critical mineral supply chains, refining 68 percent of nickel, 40 percent of copper, 59 percent of lithium, and 73 percent of cobalt globally. China also commands global battery cell production. Chinese supplies are vertically integrated, with battery manufacturers and smelters like CATL and Huyaou gobbling up mines across Asia, Latin America, and Africa at an unprecedented rate. This national security could be endangered.

The answer could partly lie in Pakistan. It has increasingly gone to China for loans, falling deeper into Chinese pockets, while the Biden administration chose to downgrade the US – Pakistanrelationship. Now, the incoming Trump administration can work to counter China’s control of the global critical mineral supply, by encouraging investments in Pakistani critical minerals while also reviving traditional security interests in the area.

Pakistan has vast critical mineral reserves. With the fifth largestreserves of copper in the world, it could become the “Saudi Arabia of copper” within the next 20 years. In the Balochistan region, the embattled Reko Dik mine, which underwent a long international arbitration process and only recently went under new contract, is home to one of the largest untapped copper and gold resources in the world, with an estimated 400 million tons of gold valued at over $1 trillion. There are also copper-gold deposits in less agitated regions like Gilgit-Baltistan, an isolated mountainous region at the intersection of the Himalayas, Karakorum, and Hindukush ranges

The Trump administration is arriving at an opportune time. On November 18, speaking at a USAID event, Pakistan’s Minister for Planning and Development, Ahsan Iqbal, expressed optimism about rekindling US-Pakistan relations based on “mutual respect and constructive engagement” under the incoming presidential administration.

Much of the U.S.-Pakistan relationship in recent decades has been mired in security and counterterrorism concerns. Baluchistan straddles Pakistan, Afghanistan, and Iran, and so a mineral-based US investment in Baluchistan could quickly develop into deepened US engagement with the Pakistani army, a group that has increasingly viewed normalized relations with the US as a way to distance itself from China. Through investments to develop regions like the one surrounding the Reko Dik mine, the US may simultaneously advance its interests in counterinsurgency and critical minerals.

Another obstacle in the supply chain of critical minerals is processing. There is little benefit to mining critical minerals domestically or from friendly countries if we then have to ship them off to be processed by countries like China, which dominates the processing stage. Today, China accounts for 44 percent of global copper smelting. Providing an American alternative is important. Baluchistan is home to the world’s largest deep seaport, Gwadar, which is operated by a state-run Chinese firm. If there was more investment to support increasing processing capacity in Pakistan itself, one could feasibly guarantee supply from mine to processor and then to market.

[Riaz Haq]

The Economist

*The Global Gold Boom’s $150 billion Final Frontier: Pakistan*

Oct 9th 2025

https://www.economist.com/asia/2025/10/09/the-global-gold-booms-150...

In late September Shehbaz Sharif, Pakistan’s prime minister, and Field Marshal Asim Munir, its military head, had a meeting with President Donald Trump in the Oval Office.

It was an unusual gathering.

No media were present, nor was a statement issued.

The only evidence are pictures released by the White House.

In one, Field Marshal Munir shows a casket of mineral samples to the president.

It was the latest sign of the unexpected bonhomie between Mr Trump and the field marshal.

They also had a private lunch together at the White House in June, a month after a four-day military spat between Pakistan and India.

But can a burgeoning relationship between the two leaders really rest on the promise of Pakistani minerals?

At first glance, the future looks bright for Pakistan’s reserves.

The main source of the minerals in question—the Reko Diq mine in Balochistan province—may be one of the world’s largest untapped reserves of copper and gold, minerals critical for the energy transition.

Once operational, the mine is estimated to generate about $150bn in revenue over four decades.

Since 1993 various international companies have tried to make the mine work.

Financial, legal and political concerns stopped them.

But now Barrick, a Canadian mining company, is in a consortium with three Pakistani state-owned enterprises and the Balochistan provincial government.

It is due to break ground this year.

The World Bank and the Asian Development Bank recently approved money for the project; Mr Trump also wants in.

America’s development-finance institutions are mulling one-off loans of up to $1bn to the mine.

Dig a little deeper, however, and it becomes clear the project is laden with risks.

It is close to Afghanistan and Iran, two unreliable neighbours.

The project could be disrupted by the activities of Baloch separatist terrorists in eastern Balochistan.

The Institute of Economics & Peace, an Australian think-tank, ranks Pakistan the second country in the world most afflicted by terrorism, after Burkina Faso.

Another problem concerns how the copper and gold concentrates will be shipped out of Pakistan after extraction.

There appears to be an implicit agreement between Pakistan, Barrick and their prospective lenders to keep the mine beyond Chinese influence.

At the moment, the plan is to use a faraway port near Karachi, not the nearby Chinese-built Gwadar port.

But the journey to Karachi is a long one.

The minerals would have to travel 1,330km (820 miles) by rail, much of which is in a dreadful condition.

For years, China had promised a financing package of $7bn to upgrade the railway. But its government has quietly pulled back in recent years.

To make up the shortfall, Pakistan’s government recently approved a financing package of $390m, without specifying where the money will come from.

Similarly, the Asian Development Bank is in advanced talks to provide a one-off loan of $2bn to the government (in addition to one of $410m for the mine).

And according to a recent report in the Financial Times, unofficial plans apparently shared before the meeting last month would create a new port costing $1.2bn, next to Gwadar, with some American financial support. (Trump officials say that they did not discuss the proposal.)

And it is unclear how Pakistan’s move to help the West diversify away from China would sit with the government in Beijing.

But even were it to be displeased, China has few levers to pull.

[Riaz Haq]

https://www.economist.com/asia/2025/10/09/the-global-gold-booms-150...

For years it followed a playbook of stabilisation through construction under the China-Pakistan Economic Corridor (CPEC), a flagship of the Belt and Road Initiative, a global infrastructure programme. But it is slowly backing away from doling out largesse on big projects such as roads, mines and ports.

It now talks of CPEC 2.0, focused on knowledge, sustainability and technology.

Meanwhile, Pakistan is running out of time.

The mine is not due to begin production until 2028, which is the last year of Mr Trump’s presidency.

The window of opportunity created by a global frenzy for minerals, the renaissance of America-Pakistan relations and an upsurge of commercial opportunism is narrow.

If the mine does not materialise now, the promise of economic development in Pakistan may remain buried—along with the gold. ■

[Riaz Haq]

Reko Diq copper project to generate $2.8b in exports in first-year: FinMin

https://dunyanews.tv/en/Business/912937-reko-diq-copper-project-to-...

WASHINGTON, DC (Web Desk) - Pakistan’s mining sector is poised for major expansion, with Finance Minister Muhammad Aurangzeb projecting that the first year of commercial operations at the Reko Diq copper and gold project could generate $2.8 billion in copper exports, a 10 per cent increase in the country’s overall export base.

Speaking to the media at the conclusion of his weeklong US visit for the IMF–World Bank Annual Meetings in Washington, Aurangzeb said the project is only the beginning, with additional mines and concessions expected to come online in the coming years.

“This is just the start because there are other mines and concessions coming through,” he said.

Aurangzeb highlighted that the Reko Diq project is attracting US investment, with the International Finance Corporation (IFC) leading the syndication and US EXIM Bank expected to participate once the US government shutdown concludes.

Islamabad’s long-term vision includes smelting and value addition, which will enhance Pakistan’s industrial output.

“That’s not going to happen overnight, but where we are headed has huge upside for Pakistan,” he said.