Barrick Gold has expressed interest in investing $7bn to revive Pakistan’s mining project, Reko Diq, which experts believe contains one of the world’s largest untapped reserves of copper and gold.
Barrick and Pakistani authorities say Reko Diq will not only be Pakistan’s largest foreign fixed investment but a vital source of copper — a key component for the world’s energy transition — at a time when global supplies are barely likely to meet demand.
“Reko Diq is one of the bigger copper-gold undeveloped projects in the world,” said Mark Bristow, chief executive of Barrick, which aims to start mining in 2028 subject to an ongoing feasibility study. “It’s a very big deal. Any copper mine right now is a big deal.” Bristow argues that the project, in which Barrick has a 50 per cent stake alongside the federal and Balochistan governments, will bring much-needed development to the region. “Mining, when it goes into emerging markets, is obsessed with getting its money back,” he said. “We’ve learned that you start paying benefits and dividends early on.”
The report, published by Financial Times, said that another factor that could help steer the Reko Diq project is the presence of a new investor. Saudi Arabia’s Public Investment Fund and state mining company Ma’aden have expressed interest in a stake. Analysts said the involvement of one of Pakistan’s most important allies would help shield the project from future political U-turns. Last year in December, Pakistan and Barrick Gold Corporation have signed $8 billion landmark agreement on Reko Diq project after Supreme Court termed the deal ‘legal’.
The $8 billion landmark agreement was signed by Reko Diq Gold Corporation representative and federal and Balochistan government representatives.
The Supreme Court of Pakistan on Dec 9 ruled that new deal on the Reko Diq gold and copper mining project in Balochistan is legal.—Agencies
