Barrick Reaffirms Commitment to $2.6 Billion Reko Diq Copper Project in Pakistan
TORONTO - Barrick gold’s interim CEO, Mark Hill, has reiterated the company’s commitment to the Reko Diq copper project in Pakistan, despite internal discussions about potentially separating its riskier international assets, Reuters reported November 14th. The project, located in Balochistan province, is crucial to Pakistan’s mineral strategy and represents one of Barrick’s largest long-term investments.
The Reko Diq mine is expected to produce 200,000 metric tonnes of copper annually in its first phase, with production doubling after expansion. Barrick estimates the project will generate over $70 billion in free cash flow over 37 years and added 13 million ounces to the company’s gold reserves in 2024.
However, the project faces security challenges due to frequent terrorist attacks in Balochistan and requires a railway line upgrade to transport copper concentrate to Karachi for processing.A financing package exceeding $2.6 billion is being assembled by lenders including the International Finance Corporation and the Asian Progress Bank.
Barrick returned to Pakistan in 2022 following the settlement of a years-long legal dispute, and the mine has since become a flagship investment for the country as it seeks to attract capital into its minerals sector. Some board members and shareholders have expressed concern that exposure to assets in Pakistan and Africa may be negatively impacting Barrick’s valuation compared to its North American operations, especially in the event of a potential takeover, according to sources familiar with the company’s thinking.
