Barrick Mining Corporation, a leading global mining, exploration and development company, has announced to slow development activity at its flagship Reko Diq copper-gold project in Pakistan, citing escalating security concerns and rising risks in the region, while reaffirming its long-term commitment to the multibillion-dollar venture.
Providing an update on the status of the Reko Diq project, Barrick said it continues to believe in the long-term value of Reko Diq.
“Following the preliminary findings of the review and the further escalation of security issues in Pakistan and the region, the company considers it necessary to slow the development activity and continue the project review until mid-2027.
Barrick to delay Pakistan copper-gold project amid Middle East conflict, FT reports
“The continued review will allow the company to assess in a comprehensive manner the evolving security situation, capital requirements, project financing, project scope and timeline,” read an official statement.
However, while development activity will be slowed, the project will remain under active management with a reduced capital spend.
Development of Phase 1 of the Reko Diq project was approved on this basis. Barrick said it recognises its important role in the local community and intends to continue investing in and honouring its existing in-country community and social programs.
“It is anticipated that there could be significant increases to the previously disclosed total estimated capital budget and timeline for the project,” the company said.
The previously disclosed total estimated capital cost of Phase 1 was between $5.6- 6 billion, 100% basis, exclusive of capitalisation of financing costs, and of Phase 2 was between $3.3-3.6 billion, 100% basis, exclusive of capitalisation of financing costs, with first production targeted by the end of 2028.
“Barrick will continue to monitor the security landscape closely in consultation with its joint venture partners and will provide a further update to the market following the conclusion of its review,” it concluded.
Last month, Barrick CEO Mark Hill, during a post-earnings call, said Barrick Mining’s board was reviewing all aspects of the gold and copper project in the Balochistan region.
The gold and copper project is owned 50% by Barrick, 25% by three federal state-owned enterprises and 25% by the Government of Balochistan.
American Dollar Exchange Rate