Barrick slows Reko Diq development amid security concerns in Pakistan

Barrick Mining Corporation has decided to slow development activity at the Reko Diq copper-gold project in Pakistan, citing escalating security concerns and regional risks, while extending its review of the project until mid-2027.

In a project update, the company said the decision follows preliminary findings of an ongoing review and a deterioration in the security environment in Pakistan and the broader region. It added that the extended review period will allow a comprehensive assessment of security conditions, capital requirements, financing arrangements, project scope and timelines.

Barrick stated that while development will continue, capital spending will be reduced and the project will remain under active management. Phase 1 of the project has been approved under this revised approach.

The company noted that there could be significant increases in previously disclosed capital costs and timelines. Earlier estimates placed Phase 1 costs between $5.6 billion and $6 billion and Phase 2 between $3.3 billion and $3.6 billion, excluding financing costs, with first production targeted by the end of 2028.

Barrick said it remains committed to the long-term value of the Reko Diq project and will continue to engage with local communities through ongoing social and development programmes.

The company added that it will continue to monitor the security landscape in coordination with its joint venture partners and will provide further updates after completing the review.

Last month, Barrick’s chief executive had indicated that the company’s board was reviewing all aspects of the project during a post-earnings call, reflecting growing caution over the operating environment.

The Reko Diq project, located in Balochistan, is owned 50% by Barrick, while the remaining 50% is split between three federal state-owned enterprises and the Government of Balochistan.