Barrick Gold’s interest in investing $7 billion to resurrect Pakistan’sReko Diq mining project, believed to house some of the globe’s largestuntapped copper and gold reserves, has garnered attention, as reported byARY News citing the Financial Times. This endeavor, according to bothBarrick and Pakistani authorities, signifies not only Pakistan’s mostsubstantial foreign fixed investment but also a crucial source of copper—avital component for the world’s energy transition. This investment comes ata critical juncture when global copper supplies are poised to struggle tomeet the surging demand.
Mark Bristow, Barrick’s Chief Executive, underscored the significance ofReko Diq, stating it ranks among the most substantial undevelopedcopper-gold projects worldwide. Barrick aims to commence mining operationsin 2028, pending an ongoing feasibility study. Bristow emphasized that theproject, in which Barrick holds a 50 percent stake in collaboration withthe federal and Balochistan governments, promises substantial regionaldevelopment. He emphasized a commitment to providing early benefits anddividends, differentiating Barrick’s approach in emerging markets.
Another crucial factor poised to influence the Reko Diq project is theentry of a new investor. Saudi Arabia’s Public Investment Fund and statemining company Ma’aden have expressed interest in a stake, a developmentthat analysts believe would offer protection against potential futurepolitical reversals due to the involvement of one of Pakistan’s key allies.
In December of the previous year, Pakistan and Barrick Gold Corporationinked a landmark $8 billion agreement concerning the Reko Diq projectfollowing the Pakistani Supreme Court’s validation of the deal’s legality.This monumental agreement was formalized by representatives from Reko DiqGold Corporation, the federal government, and the Balochistan government.The Supreme Court’s ruling, under Article 186 of Pakistan’s Constitution,affirmed the legal status of the Reko Diq gold and copper mining project inBalochistan.
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Reko Diq, standing as one of the world’s largest undeveloped copper-goldmines, is now set to be reactivated after a hiatus since 2011. The SupremeCourt’s verdict came in response to a reference initiated by President ArifAlvi on the advice of Prime Minister Shehbaz Sharif, solidifying theproject’s status and potential economic impact on Pakistan.
