Barrick Gold, a Canadian mining company, plans to invest $7 billion in the Reko Diq mine over the next ten years, as revealed during a recent meeting between the Federal Minister of Finance, Miftah Ismail, and Barrick President and Chief Executive, Mark Bristow.
The $4 billion investment in the first four years and $3 billion in the next 6 years was announced by the company’s CEO.
During the meeting, both parties shared a clear vision of the national strategic importance of the Reko Diq copper-gold project and were committed to developing it as a world-class mine that would create value for the country and its people through multiple generations.
Reko Diq is one of the world’s largest undeveloped copper-gold deposits. An agreement in principle reached between the government of Pakistan, the provincial government of Balochistan, and Barrick Gold earlier this year provides for the reconstitution and restart of the project, which has been on hold since 2011.
It will be operated by Barrick and owned 50 percent by Barrick, 25 percent by the Balochistan Government, and 25 percent by Pakistani state-owned enterprises.
The definitive agreements underlying the framework agreement are currently being finalized by teams from Barrick and Pakistan. Once this has been completed and the necessary legalization steps have been taken, Barrick will update the original feasibility study, a process expected to take two years.
Construction of the first phase will follow that, with the first production of copper and gold expected in 2027/2028.
“During the negotiations the federal government and Barrick confirmed that Balochistan and its people should receive their fair share of the benefits as part of the Pakistan ownership group,” Bristow said.
Miftah Ismail said the development of Reko Diq represented the largest direct foreign investment in Balochistan and one of the largest in Pakistan.