Barrick Gold's interest in investing $7 billion to resurrect Pakistan's Reko Diq mining project, believed to house some of the globe's largest untapped copper and gold reserves, has garnered attention, as reported by ARY News citing the Financial Times. This endeavor, according to both Barrick and Pakistani authorities, signifies not only Pakistan's most substantial foreign fixed investment but also a crucial source of copper—a vital component for the world's energy transition. This investment comes at a critical juncture when global copper supplies are poised to struggle to meet the surging demand.
Mark Bristow, Barrick's Chief Executive, underscored the significance of Reko Diq, stating it ranks among the most substantial undeveloped copper-gold projects worldwide. Barrick aims to commence mining operations in 2028, pending an ongoing feasibility study. Bristow emphasized that the project, in which Barrick holds a 50 percent stake in collaboration with the federal and Balochistan governments, promises substantial regional development. He emphasized a commitment to providing early benefits and dividends, differentiating Barrick's approach in emerging markets.
Another crucial factor poised to influence the Reko Diq project is the entry of a new investor. Saudi Arabia's Public Investment Fund and state mining company Ma'aden have expressed interest in a stake, a development that analysts believe would offer protection against potential future political reversals due to the involvement of one of Pakistan's key allies.
In December of the previous year, Pakistan and Barrick Gold Corporation inked a landmark $8 billion agreement concerning the Reko Diq project following the Pakistani Supreme Court's validation of the deal's legality. This monumental agreement was formalized by representatives from Reko Diq Gold 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 in Balochistan.
Reko Diq, standing as one of the world's largest undeveloped copper-gold mines, is now set to be reactivated after a hiatus since 2011. The Supreme Court's verdict came in response to a reference initiated by President Arif Alvi on the advice of Prime Minister Shehbaz Sharif, solidifying the project's status and potential economic impact on Pakistan.