The Reko Diq copper and gold project in Pakistan is expected to generate approximately $74 billion in free cash flow over the next 37 years, based on consensus long-term prices, according to Mark Bristow, CEO of Barrick Gold, which owns a 50% stake in the project.
The remaining stake is held by the governments of Pakistan and Balochistan.
Reko Diq, one of the world’s largest undeveloped copper-gold areas, is anticipated to significantly impact Pakistan’s economy, which is struggling with low foreign reserves of around $11 billion. Following the resolution of a long-running dispute in 2022, the project is on track to begin production by the end of 2028, starting with 200,000 tons of copper annually in its first phase, which will cost an estimated $5.5 billion.
Completion of the first phase is expected by 2029.
In an interview with Dawn News English Bristow said The second phase, projected to cost $3.5 billion, will double production. While the mine’s reserves are estimated to last 37 years, further upgrades and expansions could extend its operational life.
The project is expected to generate significant dividends, royalties, and taxes for Pakistan.
Barrick is also negotiating with railway authorities and infrastructure providers to revamp the coal terminal at Port Qasim near Karachi to support copper transport domestically and for export. Bristow noted that the project’s timeline is on schedule, with fencing, accommodation, and surveys already completed.
Meanwhile, Saudi Arabian mining firm Manara Minerals may invest in Reko Diq within the next two quarters, Pakistani Petroleum Minister Musadik Malik said. Talks with other Gulf countries regarding mining opportunities in Pakistan are also underway. Manara executives visited Pakistan in May last year to discuss acquiring a stake in the project.
