Reko Diq project transforming Pakistan’s economic landscape

Reko Diq

Reuters has informed that the Reko Diq copper and gold project in Pakistan, co-owned by Barrick (50%) and the governments of Pakistan and Balochistan (50%), is poised to generate a staggering $74 billion in free cash flow over the next 37 years, according to Barrick CEO Mark Bristow.

Phases

The project is divided in 2 phases. In phase 1, the scheduled production is expected to start by late 2028, targeting 200,000 tons of copper annually at a cost of $5.5 billion, with completion by 2029. Phase 2 which is expected to cost $3.5 billion, will double production capacity. Estimated reserves in phase 2 are evaluated for 37+ years, with potential extensions through upgrades and expansions.

Investments

This project is a a transformative opportunity for Pakistan, which currently holds $11 billion in foreign reserves, as dividends, royalties, and taxes from Reko Diq are expected to provide substantial economic benefits.

Barrick is collaborating with local authorities to revamp key infrastructure, including the coal terminal at Port Qasim, to facilitate copper transportation for both domestic use and export.

Strategic partnership

Moreover potential strategic cooperation are in play. Saudi Arabia’s Manara Minerals is exploring investment opportunities, with a decision anticipated within the next two quarters. Furthermore Pakistan is also engaging Gulf countries to attract additional mining investments.

Barrick’s CEO confirmed that the project is progressing as planned, with fencing, accommodations, and surveys already completed.