Barrick Mining is delaying its significant copper and gold project in Pakistan due to the ongoing conflict in the Middle East and the worsening security conditions in the South Asian nation.
This decision follows the Toronto-based company’s initiation of a review of the Reko Diq development last month, brought on by an increase in separatist violence in Balochistan, the province where the mine is situated.
“In light of the initial findings from the review and the subsequent rise in security concerns in both Pakistan and the Middle East, the company deems it essential to further evaluate the potential impacts and delivery strategy,” the miner communicated to its Pakistani equity partners and the local operator of the project this week.
“Consequently, development activities will be decelerated, leading to a corresponding reduction in project expenditure for a 12-month period starting in July,” it added, noting that the review period and the slower development pace “will affect previously established budgets and timelines.”
Barrick chose not to provide comments regarding the mega mining project in Pakistan.
Reko Diq has the potential to become one of the largest copper-gold mines globally, although industry experts have warned that developing it will be costly and complex.
Barrick to begin production in 2029
Barrick holds a 50 percent stake in the mine and oversees its board, with the remaining equity divided among three state-owned enterprises in Pakistan and the provincial government of Balochistan.
Three individuals involved with the mine indicated they had been informed of Barrick’s intentions, which precede a project board meeting set for next week to finalise the project’s strategy.
The postponement implies that the initial production will not commence until 2029 at the earliest, they noted.
Before the review, the first production at the mine was anticipated to begin in 2028, a timeline that its local partners privately regarded as ambitious.
The intensifying conflict in the Middle East has disrupted global markets, causing oil and gas prices to soar, leading to shortages of essential materials, and further destabilising the region.
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