Barrick Mining Corporation has slowed development of Pakistan’s Reko Diq copper-gold project, saying security must improve before full-scale construction proceeds.
Chief executive Mark Hill told the Mining Forum Americas that the company was reassessing the Balochistan project.
“We are revisiting it because we need some sort of security improvement before we would embark on a full construction schedule at Reko Diq,” Hill said.
He provided no revised construction timetable and did not quantify the slowdown’s impact during the presentation. His comments also indicated a review of the project’s engineering, procurement and construction management strategy.
Project review extends into 2027
Barrick had already announced a broader reassessment following escalating security risks and incidents. In an April 2 update, it said the review would continue until mid-2027.
The assessment covers security, capital requirements, financing, project scope and timing. Barrick said it would maintain active management while reducing development activity and capital spending.
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It also reaffirmed its commitment to existing community and social programmes in Pakistan.
The company previously targeted first production by the end of 2028. However, its April update warned of potentially significant increases in both costs and the project timeline.
Security remains a major concern in Balochistan. At a July 31 briefing, Pakistan’s military reported more than 40,000 counterterrorism operations nationwide during 2026 up to that point. These included over 31,000 intelligence-based operations in Balochistan.
Investment estimates have increased
Canada-based Barrick, formerly Barrick Gold Corporation, operates Reko Diq and owns 50 per cent. The Balochistan government holds 25 per cent, while three Pakistani state-owned enterprises share the remaining 25 per cent.
Earlier estimates put the two-phase investment at approximately $7 billion. Phase-one costs subsequently rose from $4 billion to around $5.6 billion, with phase two estimated at roughly $3.5 billion.
Barrick’s April update cited more recent ranges of $5.6 billion to $6 billion for phase one. It put phase two at $3.3 billion to $3.6 billion, excluding capitalised financing costs.
Those ranges imply a combined $8.9 billion to $9.6 billion before financing costs, exceeding the earlier $7 billion estimate. The ongoing review could increase these amounts further.
Mine plans include thousands of jobs
Reko Diq lies in Balochistan’s Chagai district, near Pakistan’s borders with Iran and Afghanistan. The proposed conventional open-pit mine and milling facilities would produce high-quality copper-gold concentrate.
Phase one would process approximately 45 million tonnes of ore annually. Phase two would double capacity to 90 million tonnes.
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Earlier plans envisaged a mine life of at least 40 years. The updated feasibility study reduced that to 37 years because of higher throughput. Further mineral discoveries could potentially extend operations to 80 years.
Project estimates envisage 7,500 jobs during peak construction and 4,000 long-term positions once production begins.
An earlier projection put free cash flow at approximately $74 billion over 37 years, using consensus long-term commodity prices. That forecast predates the current security and cost review.
