Barrick gives solid reassurance for Reko Diq after withdrawal reports

• Barrick clarifies after reports of possible break-up or asset sales.
• Safety and logistical challenges remain for the $7 billion project.
• Reko Diq is seen as a cornerstone of Pakistan’s mineral strategy.

KARACHI: Barrick Mining Corp said it remains fully committed to the Reko Diq copper project in Pakistan, after reports suggested the company was considering pulling out of the venture, according to its interim chief executive.

The $7 billion project in the remote, western province of Balochistan is being carried out in equal partnership between the company and Pakistani authorities, and is expected to start production by the end of 2028.

Barrick’s board had raised the possibility of a spin-off of the company’s assets, which could include an outright sale of the Reko Diq mine and the company’s African assets, Reuters it said this month, citing sources familiar with the company’s thinking.

“Barrick remains committed to the Reko Diq project and to Pakistan,” said Mark Hill Reuters.

Security, scale, stake

Balochistan suffers frequent attacks, making security a key concern for the mine. The project also requires upgrading the rail line to transport copper concentrate to Karachi for processing abroad.

Lenders such as the International Finance Corporation and the Asian Development Bank, among others, are putting together a financing package that exceeds $2.6 billion.

The Reko Diq project added 13 million ounces to Barrick’s gold reserves in 2024 and is expected to produce 200,000 metric tons of copper per year in its first phase, doubling upon expansion, with projected free cash flow of more than $70 billion over 37 years.

Pakistan’s mineral play

Barrick’s remarks underscore the importance of Reko Diq to both Pakistan and the company, with Islamabad counting on the mine to solidify its minerals strategy as the Canadian miner moves forward with one of its biggest long-term projects.

Sources familiar with the company’s thinking said Reuters This month, board members and some shareholders worried that exposure to riskier assets in Pakistan and Africa could weigh on Barrick’s valuation compared to its safer North American operations, particularly under any potential takeover interest.

Barrick returned to Pakistan in 2022 after a years-long legal dispute was settled, and the mine has since become a flagship investment for the country as it seeks to raise more capital in its minerals sector.