Barrick Mining Corp (ABX.TO) stands fully behind the Reko Diq Copper Project after speculation that it may exit the venture. Production is expected to kick off by the end of 2028 and is equally owned by Barrick and the Pakistani government.
This project is worth $7 billion and is in the western province of Balochistan, a region that has been impacted by insurgency activity.
Barrick interim CEO Mark Hill told Reuters that “Barrick remains committed to the Reko Diq project and to Pakistan.” This statement comes after previous reporting that the mining giant was looking to sell off its African assets, along with the Reko Diq mine.
If successful, the project would generate approximately $74 billion in free cash flow over the next 37 years, according to Reuters. This deal reflects Pakistan’s long-term ambitions to be a key player in the critical minerals sector.
Due to the situation in Balochistan, a financing package in excess of $2.6 billion is being assembled by the International Finance Corporation and Asian Development Bank, among other entities. The need for financing reflects the fact that the success of the project, in large part, depends upon upgrading railway lines in and out of the region. Doing so will ensure that copper concentrate can be successfully transported from the project site to Karachi.
The Canadian mining giant had previously delayed the project as a result of a long-running dispute with the government but resumed progress in 2022 after the company and Pakistan struck a deal. This mining project has become a key selling point for Pakistan to attract more foreign direct investment for the mining industry.
This news comes on the heels of the recent announcement that U.S. Strategic Metals (USSM) signed a $500 million deal to develop minerals in Pakistan. Part of the deal includes the establishment of a polymetallic refinery.
“This signing is yet another example of the strength of the U.S.-Pakistan bilateral relationship that will benefit both countries,” the U.S. Embassy in Pakistan said in a statement.
