Pakistan, Barrick review security plans for Reko Diq project amid rising costs

Pakistan and Barrick Mining Corporation are reviewing security arrangements for the multi-billion-dollar Reko Diq copper and gold project, with discussions underway on potential upgrades that could increase project-related security costs, as per reports. 

Speaking to journalists, Oil and Gas Development Company Limited (OGDCL) Chief Executive Officer Ahmad Hayat Lak said a Barrick team is currently in Pakistan to discuss security requirements and related procurement plans for the project.

Lak said the Reko Diq project agreement already contains provisions covering security arrangements, and both sides are carrying out a formal review to determine whether additional measures and funding may be required.

He noted that Pakistan, as the host country, remains responsible for ensuring security at the project site.

According to Lak, lenders have expressed confidence in the existing security framework after conducting their own due diligence before committing financing to the project. He added that additional financiers are also showing interest in participating in the venture.

Petroleum Minister Ali Pervaiz Malik said Barrick Executive Chairman John L. Thornton recently led a high-level delegation to Islamabad to hold discussions with government officials on the project's security environment and procurement strategy.

The minister said the meetings reflected Barrick's continued commitment to the Reko Diq project despite global and regional challenges.

The delegation also discussed the procurement of heavy-duty mining equipment through competitive bidding and reviewed options for expanding the project's lending and credit facilities.

Reko Diq is one of the world's largest undeveloped copper and gold deposits and is being developed through a partnership involving Barrick Mining Corporation, the Government of Pakistan and state-owned enterprises, including OGDCL.