Reko Diq Copper-Gold Project to Generate $74 Billion in 37 Years, Boosting Pakistan’s Economy

Reko Diq Copper-Gold Project to Generate $74 Billion in 37 Years, Boosting Pakistan’s Economy

Islamabad, The Gulf Observer: The Reko Diq copper and gold project in Pakistan is projected to generate approximately $74 billion in free cash flow over the next 37 years, according to Mark Bristow, CEO of Barrick Gold, which owns a 50% stake in the project. The governments of Pakistan and Balochistan hold the remaining 50%.

Reko Diq is considered one of the world’s largest undeveloped copper-gold reserves and is expected to play a transformative role in Pakistan’s struggling economy. After years of delays due to a legal dispute resolved in 2022, production is slated to begin by the end of 2028.

In its first phase, the project will produce 200,000 tons of copper annually at an estimated cost of $5.5 billion, with completion targeted for 2029. A second phase, expected to cost $3.5 billion, will double production capacity. Though reserves are estimated to last 37 years, Bristow hinted that upgrades and expansions could extend the mine’s lifespan.

The project is anticipated to provide substantial dividends, royalties, and tax revenues to Pakistan, which currently holds just $11 billion in foreign reserves. Preparatory work, including fencing, accommodation, and surveys, has already been completed, and the project remains on schedule.

Saudi mining firm Manara Minerals is considering investing in Reko Diq within the next two quarters, according to Pakistan’s Petroleum Minister Musadik Malik. Talks with Manara began last year, and discussions with other Gulf countries regarding mining opportunities are ongoing.