ISLAMABAD: Barrick Mining has announced a major slowdown at the Reko Diq copper-gold project in Balochistan citing escalating security concerns in Pakistan and the Middle East.

The Canadian miner confirmed it will extend its ongoing review by 12 months from July while slowing development activity and reducing spending during the period.

This move follows a preliminary review launched on February 5 2026 and comes as international media including Reuters Bloomberg and the Financial Times report heightened risks linked to regional conflicts particularly involving Iran.

The Reko Diq deposit ranks among the world’s largest undeveloped copper-gold resources holding an estimated 5.9 billion tonnes of ore with significant copper and gold content.

Project ownership stands at 50 percent Barrick 25 percent Pakistani federal state-owned enterprises and 25 percent Government of Balochistan.

Barrick has already invested 849 million dollars to date including 721 million dollars spent in 2025 alone against an initial Phase 1 budget approaching 6 billion dollars.

The slowdown is expected to impact previously disclosed budgets and timelines with first production now likely slipping from the original 2028 target to at least 2029.

Economist Dr Farrukh Saleem described the announcement as corporate language signaling a deeper revision of the project describing it as a potential 100 billion dollar red flag for the global mining industry.

He noted that mining giants worldwide are closely watching both the Reko Diq developments and Barrick’s broader announcements.

Barrick however maintained it continues to believe in the long-term value of Reko Diq while assessing potential impacts on delivery strategy.

The project forms a cornerstone of Pakistan’s ambitions to boost mineral exports attract foreign direct investment and generate substantial economic returns.

Estimates suggest the mine could produce over 70 billion dollars in free cash flow and 90 billion dollars in operating cash flow across a 37-year lifespan.

Local projections indicate potential revenue exceeding 53 billion dollars while creating around 7500 direct jobs primarily benefiting communities in the Chagai district.

Pakistan has repeatedly assured investors of its capacity to provide robust security for the multibillion-dollar venture following recent incidents in Balochistan.

The region has faced a long-standing insurgency that intensified in early 2026 prompting Barrick’s initial review of security arrangements capital allocation and development timetable.

International coverage from major outlets underscores how Middle East tensions particularly the Iran conflict are compounding local security challenges for large-scale extractive projects.

This has raised questions about risk mitigation in frontier mining investments across volatile regions.

Analysts point out that copper demand remains strong globally driven by energy transition technologies electric vehicles and renewable infrastructure.

Reko Diq’s scale positions it as a strategic asset yet current geopolitical headwinds are forcing major players to recalibrate timelines and expenditures.

The extended review period will allow Barrick to refine its approach while keeping development under active management though at a reduced pace.

Pakistani officials continue to express optimism emphasizing the project’s transparency and adherence to international standards established during its 2022 reconstitution.

Community initiatives at the site have already seen 6.8 million dollars invested in local development programs.

Global mining observers view the Barrick decision as a cautionary signal for similar high-value projects in emerging markets facing overlapping security and geopolitical pressures.

The announcement has sparked discussions on balancing investment potential with risk management in Pakistan’s mineral sector.

Despite the delay stakeholders in Islamabad and Quetta maintain that the underlying fundamentals of the deposit remain strong.

Further updates from Barrick are expected once the extended assessment concludes.

The development highlights the complex interplay between resource wealth security dynamics and international capital flows in one of Pakistan’s most ambitious economic initiatives.