Barrick Gold CEO "Super-Excited" About Reko Diq Copper-Gold Mine Development in Pakistan
Barrick Gold CEO Mark Bristow says he’s “super excited” about the company’s Reko Diq copper-gold development in Pakistan. Speaking about the Pakistani mining project at a conference in the US State of Colorado, the South Africa-born Bristow said “This is like the early days in Chile, the Escondida discoveries and so on”, according to Mining.com, a leading industry publication. "It has enormous upside potential". He was referring to Pakistan’s untapped discovery potential. Escondida was the first discovery of copper in Chile which is now the world's largest producer and exporter of copper. Last year, the South American country exported nearly $20 billion worth of copper.
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| Barrick Gold CEO Mark Bristow in Balochistan, Pakistan. Source: Quetta Voice |
“Copper has no substitutes,” Bristow continued. “It is as strategic as gold is precious, and we’re bringing new copper projects online just as the supply squeeze hits.” Comparing Reko Diq to Escondida, he said "walking across, there's more than one porphyry, significantly more than one, it's a real endowment for the people of Balochistan and greater Pakistan". "It (Reko Diq) is world class, a gold mine on its own and a copper mine on its own". He expects a peak of 10,000 jobs during construction and 5,500-6,000 direct jobs to operate the Reko Diq mine afterwards. It will also create a lot of indirect job opportunities in the supply chain. "We are going to demonstrate (in Balochistan) that you can do something transformatory, both socially and economically".
Interest in developing Pakistan's Reko Diq copper and gold mines has 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.
Barrick is developing local Balochi human capital trained in modern mining. Dozens of selected candidates, including women, are undergoing 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, according to Barrick Gold.
The 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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https://search.app/1zZg2NPC8AR9XDQt8
The warrants mark the latest measures by Mali’s government that target foreign mining companies operating within Africa’s second-largest gold producing nation. The Loulo-Gounkoto operation is significant for Barrick, accounting for nearly 14% of the Toronto-based company’s annual gold production and almost 12% of total revenue last year.
Barrick shares fell as much as 3.2% in New York on Thursday, leading stock declines of senior bullion producers as spot gold prices slipped.
“Today’s news continues to put an overhang on the stock with respect to the ongoing negotiations and any potential changes to the tax/equity interests in the complex going forward,” National Bank of Canada analyst Mike Parkin wrote in a Thursday note. “The government of Mali has taken an aggressive approach towards negotiations with mining companies in the country.”
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.
Gold plays a vital role in both our cultural and financial landscape, acting as a hedge against inflation and economic volatility. With such vast personal and state-owned gold holdings, there is significant potential for leveraging this wealth for national growth.
Source: TradingEconomics, Mettis Global
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.