Reko Diq: Value of Pakistan's Copper Deposits Soars Amid Surging Demand
The value of copper assets has surged 31.7% in the last six months, significantly surpassing the rise in tech stocks (20.2%) and gold (20%) in the same period. Growing demand for copper is mainly driven by increasing adoption of green technologies such as electric vehicles and growth in AI (artificial intelligence) data centers using the latest Nvidia chips. At current prices, the value of copper and gold deposits at Reko Diq in Balochistan province is nearly $200 billion.
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| Comparing Asset Price Appreciation Over Last Six Months. Source: Wall Street Journal |
Interest in developing Pakistan's Reko Diq copper and gold mines has also grown with widening gap between demand and supply of the metals. Dennis Mark Bristow, CEO of the Canadian mining giant Barrick Gold Corporation, has said the Reko Diq mining project in Balochistan province is “absolutely on track” and would be able to begin production by 2028, according to news reports. Bristow said Reko Diq is an “enormous project” in which the company would be investing $10 billion.
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| Growing Copper Supply-Demand Gap |
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| Clean Energy Driving Global Copper Demand. Source: IEA Via Nikkei |
New infrastructure development is underway to connect Reko Diq with the national highway network. Barrick is building a link road to connect the mining project site with N-40 Quetta-Taftan national highway. Barrick chief says the company looks at the project as a “multi-generational investment,” adding that it wants all children under the age of 10 in the Reko Diq region to be in school by the end of 2024. Similar infrastructure projects to support coal mining in Thar desert have brought socioeconomic improvements and human development for the local villagers.
Reko Diq project is expected to employ thousands of workers during and after completion. Barrick has interviewed over 3,000 applicants from universities across Pakistan and selected 9 Baloch citizens, four women and five men, according to Bristow. “And they are now working on our mines in Argentina and they will go through a program of development and gaining experience from all our different operations around the world,” Bristow said, saying 30 such graduates would be employed in training programs with the company by the end of the year. By Jan-Feb next year (2025), he said, 1,200 people would be employed, which would increase to 6,000 by 2026. “By the time we peak production, we will have employed 10,000 people,” Bristow told Arab News.
Canadian mining giant Barrick Gold Corporation and the governments of Pakistan and Balochistan reached a deal to restart the Reko Diq mining project back in March 2022 on former Prime Minister Imran Khan's watch. Reko Diq is the world's 4th largest undeveloped copper-gold porphyry deposit with over 14 million tons of copper (worth $142 billion at $9,464 per ton) and 21 million ounces (worth $50 billion at $2,367 per ounce) of gold.
The project was abandoned in 2011 after a Pakistan Supreme Court bench headed by former Chief Justice Iftikhar Chaudhry canceled the mining license granted to Tethyan Copper Company (TCC), a joint venture between Canada's Barrick Gold and Antofagasta Minerals of Chile. TCC challenged the cancellation in the International Centre for Settlement of Investment Dispute (ICSID). On July 12, 2019, the ICSID Tribunal awarded TCC $5.894 billion plus interest of $700,000 per day in damages against Pakistan. As of 1 March 2022, the award stood at $6.5 billion. The new agreement between Barrick Gold Corporation and the governments of Pakistan and Balochistan does away with this award. It also increases the share of the project owned by Pakistan from 25% to 50%, brings in $10 billion investment, the largest single investment in the country, and creates 8,000 jobs. Reko Diq is part of the Tethyan metallogenic belt (TMB) that extends from the Balkans in Europe to Pakistan including Serbo-Macedonian, Anatolian, Takab, Kerman and Chagai metallogenic belts. It is believed to be rich in copper and gold deposits.
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South Asia Investor Review
New Infrastructure Brings Socioeconomic Development to Thar Desert
Pakistan Revives Reko Diq Mining Project
Kachhi Canal and N-70 Projects Boost Pakistan's Balochistan
Iftikhar Chaudhry Scared Away Foreign Investors
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Vindictive Judges Pursue Musharraf
Rare Earths at Reko Diq?
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https://asia.nikkei.com/Spotlight/Market-Spotlight/Copper-prices-stay-firm-after-hitting-all-time-high-on-AI-demand-China-recovery
Copper prices are expected to remain elevated for some time as traders and investors assess whether strong demand from data centers to power artificial intelligence, and from clean energy projects, materializes.
"Doctor Copper," as it is sometimes called, is seen an indicator of the health of the global economy. Consumption of the nonferrous metal often rises along with demand for infrastructure, which in turn increases as economies grow.
The benchmark three-month forward contract for copper rose to $11,104.5 per tonne on the London Metal Exchange (LME) on May 20, the highest level ever. It traded above $10,000 on Friday.
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Prices are also being buoyed by predictions of a global push for renewable energy and electric vehicles, as well as more data centers to support the development of artificial intelligence, all of which will require copper.
Industry sources and analysts say the market has been tight in North America and Europe, partly due to demand from the renewable energy industry and electric vehicle manufacturers. In terms of supply, the LME barred the trading of newly smelted Russian copper in April. Miners have struggled to meet production targets and bring on new projects onstream, such as with the Cobre Panama mine, which halted operations due to protests in the Central American country over environmental damage and land sales to foreign companies.
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With China's economy slow to take off, the Asian market is not as tight as in the West. "We are seeing current demand from China softer than anticipated," said Joannides. End-use buyers are "taking a wait-and-see attitude by delaying placing orders with the currently elevated copper prices," she said.
Copper prices are widely expected to stay elevated. Wood Mackenzie expects a supply shortfall in the market this year. Australia's Macquarie Group forecasts an average price of $10,500 per tonne in the October to December quarter, after easing to $9,800 in July to September. Goldman Sachs forecasts a surge to $12,000 per tonne by the end of the year.
Demand arising from the "green transformation" and electrification, especially in emerging markets, is "offsetting the negative impact of China's economic slowdown," said Norinobu Ozawa, general manager of the nonferrous metal and ores trading department at Japanese trading house Marubeni. In 2024, "There are limited factors that can ease the supply-demand tightness in the short-term," in the face of a potential increase in Chinese demand, he said.
Over the longer term, Japanese trading houses expect demand growth to outpace supply. While copper demand from China is not as strong as in the past, "it is likely to continue growth at annual rates of about 2.5% to 3% over the medium and long-term," said a trader at Mitsui & Co., a Japanese trading house.
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Macquarie predicts global demand for refined copper will rise 19% between 2023 and 2030, with China's own demand rising at 16% and the country remaining the world's largest copper market. India's demand will rise the fastest, at 61%, while demand from the rest of Asia is expected to grow by 25%. This takes into account demand related to data centers, the financial services company said.
Copper demand for data centers is estimated as about 200,000 tonnes, out of a total demand of about 25 million tonnes, according to Marubeni's Ozawa. "While this sounds like a small volume, it could be equivalent to one refinery" by 2030 onward, impacting the market, he said.
According to the International Energy Agency, clean energy will be a key driver of copper demand if the global energy sector is to reach carbon neutrality by 2050. The agency predicts copper demand for other uses will stay more or less flat until 2040.
https://www.dawn.com/news/1841588
The Reko Diq Mining Company (RDMC), which is developing the copper and gold project in the Chagai district, has inaugurated another reverse osmosis (RO) plant in Nok Chah village as part of its efforts to provide potable water to local communities.
A spokesman for RDMC said on Sunday that this is the third RO plant the company has established in the district, with the first two located in the villages of Humai and Mashki Chah.
He noted that all RDMC-installed RO plants are powered by solar energy, ensuring sustainability despite the region’s power distribution challenges.
The newly inaugurated plant in Nok Chah uses cutting-edge technology to produce 5,000 gallons of safe, clean drinking water daily.
Before the installation of the Nok Chah plant, the total dissolved solids (TDS) levels in local water wells exceeded 5,200, making the water unsafe for consumption.
The RO plants have reduced TDS levels to a safe range of 200 to 230, meeting health standards for human consumption.
Residents of Nok Chah village and nearby hamlets previously faced significant challenges in accessing potable water and were forced to use water with unsafe TDS levels, exposing them to various health risks.
https://www.satellitetoday.com/connectivity/2024/07/10/barrick-gold-to-use-fleet-spaces-mineral-exploration-tech-at-reko-diq-project/
International mining company Barrick Goldis using a Fleet Space Technologies solution for copper exploration at its Reko Diq project in Pakistan.
Barrick Gold is using Fleet Space’s ExoSphere product to generate 3D subsurface maps to find zones of interest for copper mining. ExoSphere combines Fleet Space’s satellite network in Low-Earth Orbit and seismic sensors and rapid data processing to improve mineral exploration.
The Reko Diq project, located in the Chagai mountain range, is one of the largest undeveloped copper-gold projects in the world. Barrick Gold plans to begin production there in 2028. Fleet Space said this solution will support ESG objectives at the site.
“By applying the latest innovations in space, AI, and 3D multiphysics to copper exploration, we demonstrate a more sustainable, scalable path to achieve the copper supply needed for our clean energy future, in alignment with the United Nations’ Sustainable Development Goals (SDGs),” commented Flavia Tata Nardini, co-founder and CEO of Fleet Space Technologies.
Pakistan has discovered potentially massive oil and gas reserves, but experts caution that exploitation will take years and significant investment.
Security concerns and high costs are deterring international oil companies from pursuing exploration in Pakistan, leaving China as the most likely partner for future development.
Despite the discovery, Pakistan continues to face an energy crisis, with Iran reportedly smuggling fuel into the country, further complicating the situation.
https://oilprice.com/Energy/Energy-General/Why-No-Major-Oil-Company-Is-Rushing-To-Drill-Pakistans-Huge-Oil-Reserves.html
A long exploration effort has led to the reportedly massive discovery of oil and gas reserves in Pakistan’s territorial waters, a cache so large that it is said it could change the economic trajectory of the beleaguered country. But no one is rushing to drill in Pakistan, and experts are concerned about jumping the gun.
According to DawnNewsTV, the three-year survey was undertaken to verify the presence of the oil and gas reserves. “If this is a gas reserve, it can replace LNG imports and if these are oil reserves, we can substitute imported oil,’’ former Ogra (Oil and Gas Regulatory Authority) member Muhammad Arif told DawnTv.
However, Arif has cautioned that it would take years before the country could be able to exploit its newfound fossil fuel resources, adding that exploration alone required a hefty investment of around $5 billion and it might take four to five years to extract reserves from an offshore location.
Pakistan covers 29% of gas, 85% of oil, 50% of liquefied petroleum gas (LPG), and 20% of coal requirements through imports, according to the Economic Times. Pakistan's total energy import bill in 2023 clocked in at $17.5 billion, a figure projected to rise to $31 billion in seven years, as per an Express Tribune report. The new discovery is no doubt a big boon for the struggling economy.
Since 2021, Pakistan has been hit with mounting debt and skyrocketing inflation, with inflation hitting nearly 30%. Meanwhile, the economy only expanded 2.4% in 2023, missing the 3.5% target. This has forced the country to rely heavily on foreign aid, which is often elusive. In January this year, Pakistan sought $30 billion for gas production to cut its fuel import bill.
According to Pakistan’s Energy Minister Mohammad Ali, Pakistan has 235 trillion cubic feet (tcf) of gas reserves, and an investment of $25 billion to $30 billion would be enough to extract 10% of those reserves over the next decade to reverse the current declining gas production and replace the import of energy.
The persistently high inflation could push Pakistan over the edge, "There is no precedent in Pakistan’s history of such a long and intense spell of inflation gripping the country," columnist Khurram Husain has written in Dawn.
A Game-Changer? Maybe.
Although Pakistan's hydrocarbon resources are yet to be quantified, some estimates suggest that this discovery constitutes the fourth-largest oil and gas reserves in the world. This could be a potential game-changer in the region’s energy flows.
Back in July, S&P Global Commodity Insights reported that four largely unexplored sedimentary basins in India could hold up to 22 billion barrels of oil. In effect, lesser-known Category-II and III basins namely Mahanadi, Andaman Sea, Bengal, and Kerala-Konkan contain more oil than the Permian Basin which has already produced 14 billion of its 34 billion barrels of recoverable oil reserves.
https://oilprice.com/Energy/Energy-General/Why-No-Major-Oil-Company-Is-Rushing-To-Drill-Pakistans-Huge-Oil-Reserves.html
Rahul Chauhan, an upstream analyst at Commodity Insights, emphasized the potential of India’s unexplored Oil & Gas sector, "ONGC and Oil India hold acreages in the Andaman waters under the Open Acreage Licensing Program (OALP) and have planned a few significant projects. However, India still awaits the entry of an international oil company with deepwater and ultra-deepwater exploration expertise to participate in current and upcoming OALP bidding rounds and explore these frontier regions," he has declared.
Currently, only 10% of India’s 3.36 million sq km wide sedimentary basin is under exploration. However, Petroleum Minister Hardeep Singh Puri says that that figure will jump to 16% in 2024 following the award of blocks under the Open Acreage Licensing Policy (OALP) rounds. So far, OALP has resulted in the award of 144 blocks covering about 244,007 sq km. Under OALP, India allows upstream exploration companies to carve out areas for oil and gas exploration and put in an expression of interest for any area throughout the year. The interests are accumulated thrice a year following which they are put on auction. According to Puri, India’s Exploration and Production (E&P) activities in the oil and gas sector offer investment opportunities worth $100 billion by 2030.
So why is no one rushing to Pakistan to drill?
Shell announced it was selling its Pakistan business stake to Saudi Aramco in June last year, and an auction for 18 oil and gas blocks at the same time last year got a muted response from international bidders, at best. No international companies even bid on 15 of the blocks, according to The Nation.
In July, the country’s Petroleum Minister, Musadik Malik, told a parliamentary committee that no international companies were interested in offshore oil and gas exploration in Pakistan,and those in the country largely had the exit door in view.
It comes down to security, and risk versus reward with Malik explaining to the committee that the cost of security is a major deal-breaker because “in areas where companies search for oil and gas, they have to spend a significant amount to maintain security for their employees and assets”. And security is provided by Pakistan, which has not been up to the task.
In March this year, five Chinese engineers were killed in a suicide attack in Pakistan’s northest, when a vehicle rigged with explosives rammed into a bus transporting staff from Islamabad to the giant Dasu dam project in the Khyber Pakhtunkhwa province. The project is part of the $62-billion China-Pakistan Economic Corridor (CPEC). This incident sparked a series of temporary shut-downs across other projects, as well.
Earlier that same month, insurgents attacked Chinese assets in Pakistan’s southwest, storming the Gwadar Port Authority complex, which is run by China. The attacks were perpetrated by the Balochistan Liberation Army (BLA), separatists fighting for an independent Balochistan, as reported by the Lowy Institute.
Essentially, what this means is that it will be China or bust for Pakistan, as state-owned or state-controlled Chinese explorers have a vastly different appetite for risk. And these massive reserves are not likely to get out of the ground without Aramco showing more desire or the Chinese stepping in, for which discussions are already underway, according to Malik.
In the meantime, Iran is said to be smuggling a billion dollars in fuel into Pakistan every year, as the country’s oil and gas crisis emboldens the black market trade.
https://www.arabnews.com/node/2571377/pakistan
Reko Diq in Pakistan’s southwest is considered one of the world’s largest undeveloped copper and gold resources
State-owned media says Pakistan expects up to $5 billion of Saudi investment in mining, agriculture by June 2025
ISLAMABAD: Saudi Arabia has offered a 15 percent investment in the Reko Diq copper and gold mine project in Pakistan’s southwestern Balochistan province, according to Pakistani state-owned media on Saturday.
Reko Diq is considered one of the world’s largest undeveloped copper and gold resources, primarily operated by Canada’s Barrick Gold, which holds a 50 percent stake in it.
The remaining stake is owned by three federal state-owned enterprises and the Balochistan provincial government, though Pakistan has also invited Saudi Arabia to invest in the project.
“Saudi Arabia has offered fifteen percent investment in Reko Diq Mining project,” the Radio Pakistan said in one of its reports. “The Kingdom has also offered grants to build road infrastructure around the Reko Diq project.”
“Special Investment Facilitation Council (SIFC) has approved the structure of the offer but the final decision has been left to the Cabinet Committee on Intergovernmental Transactions,” it added.
Pakistan set up the SIFC, a civil-military hybrid body, last year in June with the sole purpose of reviving the frail national economy, dented by low foreign exchange reserves, currency depreciation and record inflation.
Barrick Gold’s top official, Mark Bristow, has also acknowledged the Saudi interest in the project, saying his company would not dilute its equity.
However, he added that Barrick Gold would not oppose any decision by the Pakistan government to sell part of its stake to Saudia Arabia.
Radio Pakistan said the government in Islamabad expects up to $5 billion investment in the mining and agriculture sector by June next year.
https://pubs.usgs.gov/myb/vol3/2019/myb3-2019-pakistan.pdf
In 2019, Pakistan was the world’s third-ranked producer
of iron oxide pigments. The country was ranked 11th in the
production of barite, accounting for 1.2% of the world’s
production and for an estimated 10.3% of the world’s reserves.
Pakistan also produced other mineral commodities, such as
cement, chromite, clay, coal, copper, crude petroleum, gypsum,
iron ore, lead, limestone, natural gas, silver, and zinc (Brioche,
2021; McRae, 2021)
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2018. In fiscal year 2019 (July 1, 2018, through
June 30, 2019), the mining and quarrying sector contributed
2.6% of the GDP and the growth rate of the mining and
quarrying sector was negative 1.96% compared with 7.72% in
fiscal year 2018 (International Monetary Fund, 2020; State Bank
of Pakistan, 2020a, p. 18–19; 2020b, p. 8; 2020d, p. 3).
The total import value in fiscal year 2019 was $54.8 billion
compared with $60.8 billion in fiscal year 2018. The import
value of mineral fuels, oils, and their distillation products was
$16.0 billion; iron and steel, $3.38 billion; articles of iron or
steel, $840 million; and aluminum and articles of aluminum,
$349 million. The total export value in fiscal year 2019 was
$23.0 billion compared with $23.2 billion in fiscal year 2018.
The export value of mineral fuels, oils, and their distillation
products was $477 million; salt, sulfur, lime, and stone,
$463 million; and copper and articles of copper, $269 million
(State Bank of Pakistan, 2020c, p. 123–124).
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In 2019, the production of lignite was estimated to have
increased by 180%; lead (mine, Pb content), by 68%; feldspar,
by 61%; chromium (mine, Cr2
O3
content), by 46%; zinc (mine,
Zn content), by 39%; talc, by 38%; lead (secondary, refinery),
by 33% (reported); soda ash, by 27%; bentonite, by 24%;
kaolin, by 17%; and sand and gravel (industrial, silica), by 12%.
In contrast, the production of fuller’s earth was estimated to
have decreased by 85%; dolomite, by 57%; bauxite, by 49%;
iron oxide pigment, by 47%; magnesite, by 39%; sulfur (native),
by 38%; pumice, by 33%; raw steel, by 30% (reported);
limestone, by 22%; iron (mine, Fe content) and phosphate rock
(gross weight), by 20% each; barite, by 15%; sand and gravel
(industrial, unspecified), by 13%; rock salt, by 12%; and quartz,
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Copper and Gold.—In 2019, Metallurgical Corporation
of China Ltd. (MCC) applied for an extension of its mining
license for the Saindak copper-gold mine, which was set to
expire in 2022. MCC operated the Saindak Mine through a
50%-owned subsidiary, Saindak Metals Ltd. The company
produced 13,049 metric tons (t) of copper (mine, Cu content)
in 2019, which was an increase of 4.1% from the 12,538 t
produced in 2018. MCC mined mainly the south and north ore
bodies using open pit mining; the deposits were expected to be
depleted of minable resources after 2021. The east ore body of
the mine was estimated to have 278 million metric tons (Mt)
of ore and an expected mine life of 19 years. The exports of
copper and articles thereof from Pakistan to China increased to
$550 million in 2019 from $106 million in 2016 (Metallurgical
Corporation of China Ltd., 2019, p. 32; 2020, p. 31; Shahid,
2019; Independent News Pakistan, 2020).
Tethyan Copper Co., which was a joint venture between
Barrick Gold Corp. of Canada and Antofagasta PLC of Chile,
was engaged in a legal dispute with the Government of Pakistan
https://www.rff.org/publications/explainers/electrification-101/#:~:text=Electrification%20refers%20to%20the%20process,the%20impacts%20of%20climate%20change.
https://www.barrick.com/English/news/news-details/2024/Second-Cohort-of-Graduates-from-Balochistan-Selected-for-Reko-Diq-International-Graduate-Development-Program/default.aspx
KARACHI – Reko Diq Mining Company (RDMC) is proud to announce the selection of eighteen talented young graduates from Balochistan for the second cohort of the prestigious RDMC International Graduate Development Program (IGP). As part of its to commitment to develop local and national employees, Barrick, the operator of RDMC, launched the International Graduate Development Program for the Reko Diq project in July 2023.
Welcoming IGP 2024 cohort at a ceremony in Karachi, Barrick CEO Mark Bristow said, “We are excited to have you join the Reko Diq International Graduate Development Program. Since its inception this program has aimed to engage young graduates like you from Balochistan to equip them with the skills necessary for successful careers at Reko Diq and in the mining industry. I would urge you to embrace this opportunity to learn, collaborate and shape the future of the Reko Diq project, your province and the country.”
For the 2024 program, a rigorous merit-based selection process led to the identification of eighteen exceptional graduates from a competitive pool of over 3,000 applicants. Among those selected are four women, underscoring Barrick's commitment to gender diversity within the mining sector. The graduates hold degrees in various fields, including Electrical Engineering, Mechanical Engineering, Geological Engineering, Civil Engineering, Environmental Sciences, Mining Engineering, and Geology.
Like the selected graduates of 2023, this second batch of talented youth from Balochistan will embark on an intensive two-year on-the-job training program at Barrick’s mine sites at of Veladero in Argentina and Lumwana in Zambia. This hands-on experience is designed to equip them with practical skills and insights into world-class mining operations. Upon completion of the program, graduates typically return to Barrick operations in their home country, contributing to driving positive change in their communities.
The selected cohort represents a diverse range of districts in Balochistan, including Panjgur, Gwadar, Quetta, Loralai, Khuzdar, Noshki, Musa Khel, Killa Saifullah, Zhob, and the Chagai district where Reko Diq is located. Their participation in the program not only helps to address the regional skills gap but also promotes local empowerment and economic development.
https://www.mining.com/video-reko-diq-project-like-the-early-days-in-chile-barrick-ceo-bristow-says-part-3/
As Barrick Gold (TSX: ABX; NYSE: GOLD) expands its copper exposure, CEO Mark Bristow says he’s “super excited” about the company’s Reko Diq copper-gold development in Pakistan.
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“This is like the early days in Chile, the Escondida discoveries and so on,” he said at the Gold Forum Americas in Colorado Springs, referring to Pakistan’s untapped discovery potential.
Bristow said supply constraints for gold and copper and the strong demand are pushing prices higher, while both suffer from weak development pipelines. The company is expanding its Lumwana copper mine in Zambia and Reko Diq in Pakistan, both of which will add to its copper output while driving local economic development.
“Copper has no substitutes,” Bristow said. “It is as strategic as gold is precious, and we’re bringing new copper projects online just as the supply squeeze hits.”
Bristow also addressed the suspension of operations at Barrick’s Porgera gold mine in Papua New Guinea last month due to local clan violence. He reinforced the company’s commitment to making a positive social and environmental impact, especially in emerging markets.
Watch the final part of Bristow’s three-part interview with The Northern Miner’s western editor, Henry Lazenby.
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Mining is a vital part of Chile's economy, and the country is a global leader in the industry:
Copper
Chile is the world's top producer of copper, accounting for 24% of the global supply in 2022. The country's copper production is concentrated in the north, particularly in the Antofagasta region, where the world's largest copper mine, Escondida, is located.
Lithium
Chile is the world's second largest producer of lithium, with about 30% of the global supply. Chile is part of the "Lithium Triangle" in South America, along with Argentina and Bolivia, which together contain the world's largest lithium reserves.
Mining exports
In 2021, Chile's mining exports were worth approximately $57 billion, which was more than 60% of the country's total exports.
Mining jobs
Mining generates hundreds of thousands of direct jobs in Chile.
Mining services
Chile exports mining services to more than 39 markets, with the main destinations being the U.S., Peru, and Mexico.
Chile's mining sector is also known for its technological advancements and commitment to sustainability. The country is working to promote sustainable mining by fostering collaboration between mining companies, communities, and suppliers.
https://www.dawn.com/news/1878379
QUETTA: Reko Diq Mining Company (RDMC) has submitted a comprehensive document to the authorities in Balochistan and Sindh for review and approval after completing the Environment and Social Impact Assessment (ESIA) for the Reko Diq gold-cum-copper project in Chagai district.
The ESIA is a critical step in ensuring that RDMC operations adhere to the highest global environmental and social standards. Over a period of two-and-a-half years, a team of independent experts conducted extensive social and environmental studies in consultation with local communities, environmental groups and government stakeholders.
The studies evaluated the potential environmental and social impacts of the project, including air quality, water resources, biodiversity and the well-being of local populations. The mitigation hierarchy was integrated into the project design, with mitigation measures to be implemented as part of ongoing management plans.
“We are fully committed to the sustainable development of our project, and the completion of this ESIA represents a major milestone in ensuring that our operations will be environmentally responsible and beneficial to the communities where we work,” said Ashley Price, ESIA Manager for RDMC.
https://www.agbi.com/mining/2025/01/saudi-arabia-chases-15-stake-in-pakistans-reko-diq-mine/
Saudi Arabia is in talks with Pakistan to acquire a 15 percent stake in one of the world’s largest undeveloped copper and gold resources, a Pakistani government minister has said.
Negotiations between the two countries started last year over a minority stake in the Reko Diq copper and gold mine project in Pakistan’s southwestern Balochistan province.
Media reports in Pakistan said the federal cabinet had approved the sale of a 15 percent stake for $540 million and that the Saudi Fund for Development will provide $150 million to support mineral development in the Balochistan area.
However, Pakistan’s petroleum minister Musadik Malik said the deal has not been approved yet.
“The matters with Saudi Arabia on Reko Diq are moving forward positively and will be finalised soon,” he said in a statement on X. “A price negotiation committee is handling the matters to ensure negotiations proceed in a timely fashion to seal the deal soon. However, it has not been finalised yet.”
The mine is 50 percent owned by Canada’s Barrick Gold, one of the world’s largest gold mining companies.
Three federal state-owned enterprises in Pakistan own 25 percent and the Balochistan government owns the remaining 25 percent.
https://www.reuters.com/markets/commodities/pakistans-reko-diq-mine-generate-74-billion-free-cash-flow-over-37-years-barrick-2025-01-20/
Barrick Gold owns a 50% stake in the Reko Diq mine and the governments of Pakistan and the province of Balochistan own the other 50%. Barrick considers the mine one of the world's largest underdeveloped copper-gold areas, and its development is expected to have a significant impact on Pakistan's struggling economy.
IThe project, which was delayed due to a long running dispute that ended in 2022, is expected to start production by the end of 2028. It will produce 200,000 tons of copper per year in its first phase, with an estimated cost of $5.5 billion. The first phase is expected to be completed by 2029, Barrick's CEO Mark Bristow told Pakistani digital media outlet Dawn News English.
A second phase, estimated to cost $3.5 billion, will double production, he added.
The mine is estimated to have reserves lasting 37 years but Bristow said that through upgrades and expansions it could potentially be mined for much longer.
A free cash flow of $74 billion could generate significant dividends, royalties and taxes for Pakistan, which currently has only around $11 billion in foreign reserves.
Barrick is also in talks with railway authorities and infrastructure providers to revamp the coal terminal in Port Qasim, on the outskirts of Pakistan's port city Karachi, to develop infrastructure to transport copper in the country and for export.
Bristow said the project's timeline is on track, with fencing, accommodation, and surveys already completed.
Saudi Arabian mining company Manara Minerals could invest in Pakistan's Reko Diq mine in the next two quarters, Pakistani Petroleum Minister Musadik Malik said last week.
Executives from Manara visited Pakistan in May last year for talks about buying a stake in the project. Pakistan is also in talks with other Gulf countries about mining opportunities, Malik said.
Kingdom plans to purchase up to 20% share in $9bn complex as it looks to accelerate its diversification away from oil
https://www.ft.com/content/6de43b38-d4fe-479a-8aba-55ea994c22d9
Saudi Arabia’s investment mining fund is set to buy a stake in Pakistan’s Reko Diq project, which will be one of the world’s largest copper mines once complete, as the kingdom accelerates its expansion into the sector. Manara Minerals plans to buy 10-20 per cent of the $9bn complex, which is being developed by Barrick Gold, and secure an offtake agreement for future output. Copper is vital for the clean energy transition. The mining fund would buy the equity stake from the government of Pakistan, which owns 25 per cent of the mine, for between $500mn and $1bn, according to people close to the discussions. “This is a massive project, it will change the Pakistan economy. It’s very big,” Barrick’s chief executive Mark Bristow said in an interview in Riyadh on the sidelines of a mining summit there last week. An investment by Saudi Arabia would be “good for the whole project because it brings a heavyweight regional partner into the mix”, he added. It is nearing the finishing line after a high-level delegation from Pakistan last week visited Riyadh, where the country’s petroleum minister Musadik Malik told journalists he expected a deal within the next six months.
When completed it will be a big boost for Barrick Gold, which has suffered a share price slump after a dispute with the government of Mali forced it to shut down its big gold mine in the west African country. Saudi Arabia is one of the biggest external creditors to Pakistan, which it has lavished with loan rollovers, central bank deposits and oil facilities to help service the $9.2bn of debt the south Asian country owes the Gulf kingdom. Pakistani officials have been aggressively courting Saudi investments in recent months, as they warn their country must deliver “investable” projects because the kingdom’s appetite for financially propping it up is running thin. Reko Diq, which is in western Balochistan near the Afghan and Iranian borders, will produce as much as 400,000 tonnes of copper and 500,000 ounces of gold once both phases of the project are complete, according to Barrick. The south-western province has been suffering from a brutal insurgency from Baloch ethnic separatist groups motivated in part by a backlash to foreign investors harvesting the region’s rich natural resources. The initial phase of the mine would cost $4.5bn, and be funded by $1.5bn from Barrick, a similar but slightly lower amount from Pakistan, and the remainder from a debt consortium that would include the World Bank, the Asian Development Bank and other western lenders, according to Bristow. A second phase of the mine, estimated to cost a further $4.5bn, would be funded by the revenues generated during the first phase, Bristow said.
Some infrastructure is already being developed at the site, including an airstrip and housing for 1,000 workers, in anticipation of the mine construction beginning soon. In Riyadh, ministers from Pakistan and Saudi Arabia said they were committed to the project. Saudi Arabia’s minister of industry and minerals Bandar Alkhorayef confirmed Manara was considering the Reko Diq deal in an interview with the Financial Times last Tuesday and emphasised that it could help meet the kingdom’s demand for metals. “[Manara] will be a good tool for us to ensure that Saudi Arabia secures the minerals it needs for its future industrialisation and needs,” said Alkhorayef. “It’s a platform where we can see us working with other friendly countries that look at Saudi as a reliable partner, like Pakistan.” On Barrick’s dispute in Mali, where this month the group suspended operations at its Loulo-Gounkoto mine after the military government seized gold bars at the complex, Bristow said the company had made a proposal to the junta and was “absolutely committed to finding a solution”. He declined to discuss details.
https://www.benzinga.com/news/guidance/25/01/43093586/barrick-looks-into-portfolio-optimization-sees-pakistan-as-the-new-frontier
Barrick is considering divesting from Zaldivar in Chile, evaluating its output and future capex.
The firm focuses on large-scale projects, with Pakistan’s $74 billion Reko Diq at the frontline.
Barrick Gold is reshaping its portfolio in 2025, looking to prioritize high-value, large-scale projects. Although this strategy reminds of its main competitor, Newmont, which prioritizes Tier 1 assets, Barrick still aims to profit from copper tailwinds, finding growth outside its core commodity.
As part of this strategy, the company is considering divesting its 50% stake in the Zaldivar copper mine in Chile, co-owned with Antofagasta. Zaldivar produced 80,000 tons of copper in 2024, but its relatively small scale and significant future investment requirements have prompted Barrick to explore potential buyers.
At the moment, Barrick's efforts focus on the Reko Diq copper and gold project in Pakistan, one of the largest undeveloped copper-gold resources globally. CEO Mark Bristow highlighted the opportunity in a recent interview for the regional media outlet Dawn.
"It couldn't be better positioned as timing goes, as quality goes. All our test work shows it is probably going to be right up there in quality of concentrate among the best copper mines in the world, "he said.
Reko Diq could generate around $74 billion in free cash flow over 37 years, with reserves extending beyond 50 years through planned expansions. The first phase of the project, involving an investment of $5.5 billion, is projected to produce 200,000 tons of copper concentrate and 250,000 ounces of gold annually starting in 2029.
A second phase, requiring an additional $3.5 billion, aims to double output to 400,000 tons of copper and 500,000 ounces of gold annually.
The project has attracted significant interest from global investors, notably Saudi Arabia's Manara Minerals, a joint venture between the state-owned mining company Ma'aden and the Public Investment Fund. Discussions between Manara and the Pakistani government are ongoing, with Saudi officials wanting to invest within the next two quarters. While Barrick is open to collaboration, the company has clarified that it will not dilute its equity in the project.
Reko Diq is strategically important due to its rich copper deposits and potential to supply critical metals for the global shift toward electrification and renewable energy.
However, operating in Balochistan presents challenges. The region is known for political instability, underdeveloped infrastructure, and security risks, which could complicate project execution and deter foreign investment.
Despite the hurdles, Bristow remains optimistic about the project.
"If we prove that we can do it, which I have no doubt that we'll definitely do, that'll attract some of the big copper players to Pakistan, and that's why I refer to it as the new frontier of mining, "he noted.
https://evrimagaci.org/tpg/reko-diq-mine-development-sparks-economic-potential-for-pakistan-178555
Recent agreements position Pakistan as a pivotal player in the global energy supply chain.
The Reko Diq mine development project promises to fundamentally reshape Pakistan's economic outlook by tapping extensive mineral resources and attracting substantial international investments. This pivotal venture has garnered significant interest, positioning Pakistan as a key player within the green energy supply chain.
Recent agreements emerged as game-changers, with Gentry Beach, the prominent US investor, and his company White Bridge Mining sealing partnerships aimed at leveraging Pakistan's immense mineral wealth. Beach highlighted, "Pakistan is home to extraordinary mineral wealth, and our investment is committed to unlocking its full potential through responsible mining and global partnerships.”
Located in Balochistan, Reko Diq is rich with gold and copper deposits, offering staggering economic benefits. The project expects to yield 400,000 tonnes of copper and 500,000 ounces of gold annually, creating approximately $74 billion in cash flow over the next 37 years. This projection reflects opportunities for job creation and foreign direct investment, much like the beneficial mining models observed in Chile and Australia.
Chile’s Codelco, for example, contributes nearly 10 percent of its GDP from copper mining, and Australia’s historical Gold Rush catalyzed significant infrastructure growth. Pakistan aims to emulate this success by encouraging foreign investments like the recent commitment from Saudi Arabia’s Manara Minerals Investment Company, which is poised to invest between $500 million to $1 billion. Such international partnerships signify rising confidence in Pakistan’s mining capabilities.
Mark Bristow, Barrick Gold's CEO overseeing the Reko Diq project, stated, "This project has the potential to transform Pakistan’s economy by fostering foreign investment and generating numerous job opportunities for its citizens.” His outlook emphasizes the long-term economic transformation expected from this mineral extraction endeavor.
Strategically, Pakistan is urged to adopt effective management frameworks and proactive policies to optimize Reko Diq’s potential. These include drawing lessons from Chile’s mineral royalties and reinvestment strategies alongside Australia’s focus on developing mining infrastructure. Such infrastructure investments—transport networks, processing facilities, and export hubs—are necessary to maximize Reko Diq's economic impact.
Transnational partnerships are also becoming feasible for Pakistan, as countries such as China express interest, along with various global mining corporations from Canada and Australia. This diversification effort is not merely about reducing dependency on one investor; it also aims to spur innovation within the mining sector and maintain competitive practices.
Given the projected high demand for minerals necessary for renewable technologies, Reko Diq stands at the forefront of this global energy transition. A 2021 Goldman Sachs report dubbed copper "the new oil,” highlighting its future significance as the world moves toward cleaner energy solutions. Such insights compel Pakistan to advocate for Reko Diq's role as central to the international supply chain for green technologies.
Alas, for the Reko Diq project to attain its ambitious goals, transparency must be at the forefront of its execution. This involves establishing clear guidelines for revenue sharing and project management, fostering trust among stakeholders, and maintaining public confidence. The government's commitment to stringent environmental regulations is also imperative, ensuring sustainable mining practices are prioritized and ecological disturbances minimized—assuring the livelihoods of local communities and the delicate environment of Balochistan remain intact.
https://www.kitco.com/news/off-the-wire/2025-02-06/barrick-gold-sees-higher-gold-reserves-reko-diq-project
Feb 6 (Reuters) - Canadian miner Barrick Gold (ABX.TO), saw its proven and probable gold mineral reserves rise by 23% to 17.4 million ounces before 2024 depletion, largely due to its Balochistan, Pakistan-based Reko Diq copper-gold project, the company said in a statement on Thursday.
After the completion of its feasibility study at Reko Diq, 13 million ounces of gold were added to its probable reserves on an attributable basis.
by Daniel Runde, the author of the book “The American Imperative: Reclaiming Global Leadership Through Soft Power”
https://static.jstribune.com/runde-expanding-us-pakistan-relations-through-mining-projects/
https://static.jstribune.com/runde-expanding-us-pakistan-relations-through-mining-projects/
Thus sourcing critical minerals must be treated as a US national security priority. China currently dominates critical mineral supply chains, refining 68 percent of nickel, 40 percent of copper, 59 percent of lithium, and 73 percent of cobalt globally. China also commands global battery cell production. Chinese supplies are vertically integrated, with battery manufacturers and smelters like CATL and Huyaou gobbling up mines across Asia, Latin America, and Africa at an unprecedented rate. This national security could be endangered.
The answer could partly lie in Pakistan. It has increasingly gone to China for loans, falling deeper into Chinese pockets, while the Biden administration chose to downgrade the US – Pakistanrelationship. Now, the incoming Trump administration can work to counter China’s control of the global critical mineral supply, by encouraging investments in Pakistani critical minerals while also reviving traditional security interests in the area.
Pakistan has vast critical mineral reserves. With the fifth largestreserves of copper in the world, it could become the “Saudi Arabia of copper” within the next 20 years. In the Balochistan region, the embattled Reko Dik mine, which underwent a long international arbitration process and only recently went under new contract, is home to one of the largest untapped copper and gold resources in the world, with an estimated 400 million tons of gold valued at over $1 trillion. There are also copper-gold deposits in less agitated regions like Gilgit-Baltistan, an isolated mountainous region at the intersection of the Himalayas, Karakorum, and Hindukush ranges
The Trump administration is arriving at an opportune time. On November 18, speaking at a USAID event, Pakistan’s Minister for Planning and Development, Ahsan Iqbal, expressed optimism about rekindling US-Pakistan relations based on “mutual respect and constructive engagement” under the incoming presidential administration.
Much of the U.S.-Pakistan relationship in recent decades has been mired in security and counterterrorism concerns. Baluchistan straddles Pakistan, Afghanistan, and Iran, and so a mineral-based US investment in Baluchistan could quickly develop into deepened US engagement with the Pakistani army, a group that has increasingly viewed normalized relations with the US as a way to distance itself from China. Through investments to develop regions like the one surrounding the Reko Dik mine, the US may simultaneously advance its interests in counterinsurgency and critical minerals.
Another obstacle in the supply chain of critical minerals is processing. There is little benefit to mining critical minerals domestically or from friendly countries if we then have to ship them off to be processed by countries like China, which dominates the processing stage. Today, China accounts for 44 percent of global copper smelting. Providing an American alternative is important. Baluchistan is home to the world’s largest deep seaport, Gwadar, which is operated by a state-run Chinese firm. If there was more investment to support increasing processing capacity in Pakistan itself, one could feasibly guarantee supply from mine to processor and then to market.
https://www.app.com.pk/domestic/reko-diq-mining-company-hosts-open-public-forum-in-nokkundi/
QUETTA, Feb 21 (APP):Reko Diq Mining Company (RDMC) held an open public forum in Nokkundi held at RDMC Technical Institute, organized by The Hunar Foundation.
The event saw active participation from a diverse group of local stake holders including youth from Nokkundi. Notable attendees included Haji Amanullah Kubdani, Maula Bakhsh Alezai of the National Party, Wahid Bakhsh Sherzai, Nizam Lashari, Babu Razzaq Sasoli, and Muhammad Anwar from the BNP.
During the forum, RDMC’s team provided attendees with important updates and insights on various community development initiatives, with a particular focus on the skills development program run in collaboration with The Hunar Foundation and the Mother & Child Health Center managed by the Indus Hospital Network.
RDMC’s Community Engagement Manager Ali Dost Yallanzai, Community Investment Lead Essa Tahir Sanjrani, HR Lead Inayat Kubdani, and Community Engagement Lead Noor Khan Mengal addressed a range of queries from community members.
A question regarding the publication of employee lists was addressed by explaining that, in line with international HR best practices, RDMC is committed to protecting employees’ privacy and safety and, as such, cannot disclose personal information about specific employees publicly.
Regarding local hiring, it was highlighted that as of January 2025, 78 percent of RDMC’s workforce is from Balochistan, with over 50 percent from Chagai, the majority of whom are from Nokkundi.
The forum also featured presentations from Qazi Taimoor Sanjrani, Program Manager at The Hunar Foundation, and Sher Jan Baloch, Operations Manager at Indus Hospital. These presentations highlighted the significant contributions made by both organizations, particularly regarding their local workforce.
The community was informed that, as RDMC partners, both The Hunar Foundation and Indus Hospital prioritize local hiring. Over 95 percent of their employees are from Balochistan, with the majority coming from Chagai district.
The community expressed their gratitude and appreciation for RDMC’s commitment to transparency and engagement through the organization of this open forum.
https://www.app.com.pk/domestic/reko-diq-mining-company-hosts-open-public-forum-in-nokkundi/
QUETTA, Feb 21 (APP):Reko Diq Mining Company (RDMC) held an open public forum in Nokkundi held at RDMC Technical Institute, organized by The Hunar Foundation.
The event saw active participation from a diverse group of local stake holders including youth from Nokkundi. Notable attendees included Haji Amanullah Kubdani, Maula Bakhsh Alezai of the National Party, Wahid Bakhsh Sherzai, Nizam Lashari, Babu Razzaq Sasoli, and Muhammad Anwar from the BNP.
During the forum, RDMC’s team provided attendees with important updates and insights on various community development initiatives, with a particular focus on the skills development program run in collaboration with The Hunar Foundation and the Mother & Child Health Center managed by the Indus Hospital Network.
RDMC’s Community Engagement Manager Ali Dost Yallanzai, Community Investment Lead Essa Tahir Sanjrani, HR Lead Inayat Kubdani, and Community Engagement Lead Noor Khan Mengal addressed a range of queries from community members.
A question regarding the publication of employee lists was addressed by explaining that, in line with international HR best practices, RDMC is committed to protecting employees’ privacy and safety and, as such, cannot disclose personal information about specific employees publicly.
Regarding local hiring, it was highlighted that as of January 2025, 78 percent of RDMC’s workforce is from Balochistan, with over 50 percent from Chagai, the majority of whom are from Nokkundi.
The forum also featured presentations from Qazi Taimoor Sanjrani, Program Manager at The Hunar Foundation, and Sher Jan Baloch, Operations Manager at Indus Hospital. These presentations highlighted the significant contributions made by both organizations, particularly regarding their local workforce.
The community was informed that, as RDMC partners, both The Hunar Foundation and Indus Hospital prioritize local hiring. Over 95 percent of their employees are from Balochistan, with the majority coming from Chagai district.
The community expressed their gratitude and appreciation for RDMC’s commitment to transparency and engagement through the organization of this open forum.