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Canadian mining giant Barrick Gold Corporation and the governments of Pakistan and Balochistan have reached a deal to restart the Reko Diq mining project. Reko Diq is the world's 4th largest undeveloped copper-gold porphyry deposit with over 14 million tons of copper and 21 million ounces 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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| Reko Diq Copper-Gold Mine |
New Reko Diq Deal:
The new agreement to start Reko Diq waives the ICISD award. In the reconstituted project, Barrick will have 50% ownership and Pakistan 50%, comprising a 10% free-carried, non-contributing share held by the government of Balochistan, an additional 15% held by a special purpose company owned by the government of Balochistan and 25% owned by other federal state-owned enterprises. The federal government’s shares of 25% will be divided equally amongst three state-owned entities (SOE): Oil & Gas Development Corporation Limited (OGDCL), Pakistan Petroleum Limited (PPL), and Government Holdings Pakistan Limited (GHPL). This is a huge improvement over the prior deal that gave the Balochistan government 25% stake in the project, with Tethyan holding the remaining 75%.
A separate agreement provides for Barrick’s partner Antofagasta PLC to be replaced in the project by the Pakistani parties, according to a statement released by Barrick Gold Corporation. Pakistan will buy out Antofagasta’s interest in the mine for $900 million, according to the two companies and the government.
Production Targets/Social Infrastructure Projects:
When the project goes into production in 5 or 6 years time of development, it will produce 200,000 tons of copper and 250,000 ounces of gold a year for more than half a century. At current prices, the annual copper output will be $2 billion and gold output $500 million.
The project’s development will bring in investment of approximately $10 billion in Balochistan, including $1 billion which would be invested in social uplift projects such as roads, schools, hospitals, and the creation of a technical training institute for mining. The investment is also said to result in the creation of over 8,000 jobs, according to a report in The Express Tribune newspaper.
Future Potential:
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.
“Reko Diq could also be the springboard for further exploration and other mineral discoveries along the highly prospective Tethyan Metallogenic Belt,” said Barrick Gold CEO Mark Bristow.
Foreign Direct Investment:
After reaching a peak of over $5 billion in 2007, foreign direct investment (FDI) in Pakistan has plummeted. It is at least in part attributable to bad decisions by the Pakistan Supreme Court headed by Chief Justice Iftikhar Chaudhry. Cancellation of the Pakistan Steel Mills privatization by the Chaudhry court in 2006. That decision alone has cost Pakistani taxpayers $100 million a year. Then came the Chaudhry court's decision cancelling the Reko Diq license and the $6.5 billion award against Pakistan. These decisions had a chilling effect on foreign investment in Pakistan. Let us hope the revival of the Reko Diq project helps restore confidence of foreign investors in the country. Let us also hope that this history of unwise court decisions serves as a reminder to the Pakistani judiciary to be more careful in deciding such cases in future.
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Iftikhar Chaudhry Scared Away Foreign Investors
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Saudi Arabia chases 15% stake in Pakistan's Reko Diq mine | AGBI
https://www.agbi.com/mining/2025/01/saudi-arabia-chases-15-stake-in...
Saudi Arabia is in talks with Pakistan to acquire a 15 percent stake in one of the world’s largest undeveloped copper and gold resources, a Pakistani government minister has said.
Negotiations between the two countries started last year over a minority stake in the Reko Diq copper and gold mine project in Pakistan’s southwestern Balochistan province.
Media reports in Pakistan said the federal cabinet had approved the sale of a 15 percent stake for $540 million and that the Saudi Fund for Development will provide $150 million to support mineral development in the Balochistan area.
However, Pakistan’s petroleum minister Musadik Malik said the deal has not been approved yet.
“The matters with Saudi Arabia on Reko Diq are moving forward positively and will be finalised soon,” he said in a statement on X. “A price negotiation committee is handling the matters to ensure negotiations proceed in a timely fashion to seal the deal soon. However, it has not been finalised yet.”
The mine is 50 percent owned by Canada’s Barrick Gold, one of the world’s largest gold mining companies.
Three federal state-owned enterprises in Pakistan own 25 percent and the Balochistan government owns the remaining 25 percent.
KARACHI, Jan 20 (Reuters) - 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, based on consensus long-term prices, the CEO of joint owner Barrick Gold said in a media interview.
Saudi Arabia set to buy stake in Pakistan copper and gold mining project
Kingdom plans to purchase up to 20% share in $9bn complex as it looks to accelerate its diversification away from oil
https://www.ft.com/content/6de43b38-d4fe-479a-8aba-55ea994c22d9
Saudi Arabia’s investment mining fund is set to buy a stake in Pakistan’s Reko Diq project, which will be one of the world’s largest copper mines once complete, as the kingdom accelerates its expansion into the sector. Manara Minerals plans to buy 10-20 per cent of the $9bn complex, which is being developed by Barrick Gold, and secure an offtake agreement for future output. Copper is vital for the clean energy transition. The mining fund would buy the equity stake from the government of Pakistan, which owns 25 per cent of the mine, for between $500mn and $1bn, according to people close to the discussions. “This is a massive project, it will change the Pakistan economy. It’s very big,” Barrick’s chief executive Mark Bristow said in an interview in Riyadh on the sidelines of a mining summit there last week. An investment by Saudi Arabia would be “good for the whole project because it brings a heavyweight regional partner into the mix”, he added. It is nearing the finishing line after a high-level delegation from Pakistan last week visited Riyadh, where the country’s petroleum minister Musadik Malik told journalists he expected a deal within the next six months.
When completed it will be a big boost for Barrick Gold, which has suffered a share price slump after a dispute with the government of Mali forced it to shut down its big gold mine in the west African country. Saudi Arabia is one of the biggest external creditors to Pakistan, which it has lavished with loan rollovers, central bank deposits and oil facilities to help service the $9.2bn of debt the south Asian country owes the Gulf kingdom. Pakistani officials have been aggressively courting Saudi investments in recent months, as they warn their country must deliver “investable” projects because the kingdom’s appetite for financially propping it up is running thin. Reko Diq, which is in western Balochistan near the Afghan and Iranian borders, will produce as much as 400,000 tonnes of copper and 500,000 ounces of gold once both phases of the project are complete, according to Barrick. The south-western province has been suffering from a brutal insurgency from Baloch ethnic separatist groups motivated in part by a backlash to foreign investors harvesting the region’s rich natural resources. The initial phase of the mine would cost $4.5bn, and be funded by $1.5bn from Barrick, a similar but slightly lower amount from Pakistan, and the remainder from a debt consortium that would include the World Bank, the Asian Development Bank and other western lenders, according to Bristow. A second phase of the mine, estimated to cost a further $4.5bn, would be funded by the revenues generated during the first phase, Bristow said.
Some infrastructure is already being developed at the site, including an airstrip and housing for 1,000 workers, in anticipation of the mine construction beginning soon. In Riyadh, ministers from Pakistan and Saudi Arabia said they were committed to the project. Saudi Arabia’s minister of industry and minerals Bandar Alkhorayef confirmed Manara was considering the Reko Diq deal in an interview with the Financial Times last Tuesday and emphasised that it could help meet the kingdom’s demand for metals. “[Manara] will be a good tool for us to ensure that Saudi Arabia secures the minerals it needs for its future industrialisation and needs,” said Alkhorayef. “It’s a platform where we can see us working with other friendly countries that look at Saudi as a reliable partner, like Pakistan.” On Barrick’s dispute in Mali, where this month the group suspended operations at its Loulo-Gounkoto mine after the military government seized gold bars at the complex, Bristow said the company had made a proposal to the junta and was “absolutely committed to finding a solution”. He declined to discuss details.
Barrick Looks Into Portfolio Optimization, Sees Pakistan As 'The New Frontier'
https://www.benzinga.com/news/guidance/25/01/43093586/barrick-looks...
Barrick is considering divesting from Zaldivar in Chile, evaluating its output and future capex.
The firm focuses on large-scale projects, with Pakistan’s $74 billion Reko Diq at the frontline.
Barrick Gold is reshaping its portfolio in 2025, looking to prioritize high-value, large-scale projects. Although this strategy reminds of its main competitor, Newmont, which prioritizes Tier 1 assets, Barrick still aims to profit from copper tailwinds, finding growth outside its core commodity.
As part of this strategy, the company is considering divesting its 50% stake in the Zaldivar copper mine in Chile, co-owned with Antofagasta. Zaldivar produced 80,000 tons of copper in 2024, but its relatively small scale and significant future investment requirements have prompted Barrick to explore potential buyers.
At the moment, Barrick's efforts focus on the Reko Diq copper and gold project in Pakistan, one of the largest undeveloped copper-gold resources globally. CEO Mark Bristow highlighted the opportunity in a recent interview for the regional media outlet Dawn.
"It couldn't be better positioned as timing goes, as quality goes. All our test work shows it is probably going to be right up there in quality of concentrate among the best copper mines in the world, "he said.
Reko Diq could generate around $74 billion in free cash flow over 37 years, with reserves extending beyond 50 years through planned expansions. The first phase of the project, involving an investment of $5.5 billion, is projected to produce 200,000 tons of copper concentrate and 250,000 ounces of gold annually starting in 2029.
A second phase, requiring an additional $3.5 billion, aims to double output to 400,000 tons of copper and 500,000 ounces of gold annually.
The project has attracted significant interest from global investors, notably Saudi Arabia's Manara Minerals, a joint venture between the state-owned mining company Ma'aden and the Public Investment Fund. Discussions between Manara and the Pakistani government are ongoing, with Saudi officials wanting to invest within the next two quarters. While Barrick is open to collaboration, the company has clarified that it will not dilute its equity in the project.
Reko Diq is strategically important due to its rich copper deposits and potential to supply critical metals for the global shift toward electrification and renewable energy.
However, operating in Balochistan presents challenges. The region is known for political instability, underdeveloped infrastructure, and security risks, which could complicate project execution and deter foreign investment.
Despite the hurdles, Bristow remains optimistic about the project.
"If we prove that we can do it, which I have no doubt that we'll definitely do, that'll attract some of the big copper players to Pakistan, and that's why I refer to it as the new frontier of mining, "he noted.
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.
Barrick Gold sees higher gold reserves on Reko Diq project | Kitco News
https://www.kitco.com/news/off-the-wire/2025-02-06/barrick-gold-see...
Feb 6 (Reuters) - Canadian miner Barrick Gold (ABX.TO), saw its proven and probable gold mineral reserves rise by 23% to 17.4 million ounces before 2024 depletion, largely due to its Balochistan, Pakistan-based Reko Diq copper-gold project, the company said in a statement on Thursday.
After the completion of its feasibility study at Reko Diq, 13 million ounces of gold were added to its probable reserves on an attributable basis.
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.
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.
Reko Diq Mining Company hosts open public forum in Nokkundi
https://www.app.com.pk/domestic/reko-diq-mining-company-hosts-open-...
QUETTA, Feb 21 (APP):Reko Diq Mining Company (RDMC) held an open public forum in Nokkundi held at RDMC Technical Institute, organized by The Hunar Foundation.
The event saw active participation from a diverse group of local stake holders including youth from Nokkundi. Notable attendees included Haji Amanullah Kubdani, Maula Bakhsh Alezai of the National Party, Wahid Bakhsh Sherzai, Nizam Lashari, Babu Razzaq Sasoli, and Muhammad Anwar from the BNP.
During the forum, RDMC’s team provided attendees with important updates and insights on various community development initiatives, with a particular focus on the skills development program run in collaboration with The Hunar Foundation and the Mother & Child Health Center managed by the Indus Hospital Network.
RDMC’s Community Engagement Manager Ali Dost Yallanzai, Community Investment Lead Essa Tahir Sanjrani, HR Lead Inayat Kubdani, and Community Engagement Lead Noor Khan Mengal addressed a range of queries from community members.
A question regarding the publication of employee lists was addressed by explaining that, in line with international HR best practices, RDMC is committed to protecting employees’ privacy and safety and, as such, cannot disclose personal information about specific employees publicly.
Regarding local hiring, it was highlighted that as of January 2025, 78 percent of RDMC’s workforce is from Balochistan, with over 50 percent from Chagai, the majority of whom are from Nokkundi.
The forum also featured presentations from Qazi Taimoor Sanjrani, Program Manager at The Hunar Foundation, and Sher Jan Baloch, Operations Manager at Indus Hospital. These presentations highlighted the significant contributions made by both organizations, particularly regarding their local workforce.
The community was informed that, as RDMC partners, both The Hunar Foundation and Indus Hospital prioritize local hiring. Over 95 percent of their employees are from Balochistan, with the majority coming from Chagai district.
The community expressed their gratitude and appreciation for RDMC’s commitment to transparency and engagement through the organization of this open forum.
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