ISLAMABAD: Canadian mining giant Barrick Gold has reaffirmed that development work on the multibillion-dollar Reko Diq copper and gold project in Pakistan is continuing as planned, rejecting speculation that the company may reconsider its investment due to regional geopolitical tensions.
The reassurance comes after earlier remarks from the company indicating that it would reassess aspects of the project in light of evolving security conditions following unrest in the broader Middle East. However, according to official and industry sources, Barrick has now reiterated its long-term commitment to the venture.
A senior delegation from the company, including its chairman during a recent visit to Pakistan, stressed continuity in exploration and development activities at the mineral-rich site located in Chagai district of Balochistan.
Security and procurement under detailed review
According to sources, Barrick representatives have recently arrived on an official visit focused on evaluating existing security protocols, operational safeguards, and procurement mechanisms linked to the project.
The visit also includes discussions on acquiring advanced mining equipment and reviewing expansion possibilities in the company’s lending and credit arrangements to support large-scale development.
The delegation’s engagements are aimed at ensuring that operational frameworks remain aligned with international mining standards while maintaining investor confidence in a sensitive security environment.
Talks with OGDCL and Pakistani authorities
The Managing Director of the Oil and Gas Development Company Limited (OGDCL) has held detailed discussions with Barrick executives regarding on-ground arrangements and project facilitation.
According to him, the visiting foreign delegation has been reviewing security protocols already in place, with both sides jointly assessing whether further strengthening is required and what level of additional financing may be necessary to support enhanced arrangements.
He added that law enforcement agencies are actively engaged in ensuring uninterrupted progress on the project. Both parties also discussed procurement strategies, including competitive bidding for specialised mining equipment.
Investor confidence and financing outlook
Addressing concerns about financial backing, the OGDCL chief noted that during a recent meeting in Canada, project lenders expressed satisfaction with existing security arrangements, many of which had already been independently assessed prior to financing commitments.
He further revealed that additional international lenders have shown interest in joining the project, reflecting continued global confidence in the long-term viability of Reko Diq.
Wider energy and gas sector developments
An official from the Petroleum Division said Federal Minister for Petroleum Ali Pervaiz Malik recently presented an integrated national energy strategy to the Prime Minister, aimed at strengthening Pakistan’s long-term energy resilience.
The plan includes proposals for oil-producing countries to develop storage facilities, export crude from local deposits, and utilise Pakistan’s infrastructure for regional energy trade.
The official also confirmed that approximately 400 million cubic feet per day (mmcfd) of liquefied natural gas (LNG) has been reintroduced into the national system after earlier reductions due to surplus imports.
He noted that deregulation of petroleum product pricing is under consideration to promote a competitive market structure, although the final decision will rest with the federal government.
Iran–Pakistan pipeline and strategic reserves
On the stalled Iran–Pakistan Gas Pipeline, the official stated that progress has been hindered due to ongoing international arbitration and sanctions-related constraints. He added that while work continues in limited form, foreign companies remain cautious due to security concerns, which are being addressed through coordination with relevant institutions.
The government is also reviewing policies related to strategic petroleum reserves, with studies already completed to guide emergency preparedness and energy security planning.
He emphasised that ensuring energy security requires a structured and comprehensive “energy architecture”, noting that refined fuels are currently available within refinery and marketing company inventories.
Outlook on gas pricing and supply stability
Responding to questions, the official indicated that domestic consumers may soon receive relief regarding gas pricing, although no final decision has been announced. Despite global uncertainty triggered by tensions in the Middle East, Pakistan’s energy supply chain remains stable, with no immediate disruptions reported.
He further stated that three LNG cargoes have recently arrived, while an additional spot cargo has been procured and a tender process reissued to meet ongoing demand requirements.
Reko Diq’s strategic, economic significance grows
The Reko Diq project is widely regarded as one of the world’s largest undeveloped copper and gold deposits, and is central to Pakistan’s long-term mining and export diversification strategy. Once fully operational, it is expected to significantly boost foreign exchange earnings through large-scale copper and gold exports, while also strengthening the country’s industrial base.
Under the revised development structure, Barrick Gold holds a 50 per cent stake in the project, while the remaining share is jointly owned by Pakistan’s federal and provincial governments. This partnership model has been designed to ensure both international expertise and national resource ownership, while reducing investment risks for global financiers.
Industry analysts note that Reko Diq is strategically important in the global copper supply chain, particularly as demand for copper is projected to rise sharply due to its critical role in renewable energy systems, electric vehicles and digital infrastructure. This positions the project not only as a national asset but also as a key contributor to future global mineral markets.
With an estimated multi-billion-dollar investment spread over several phases, the project is expected to generate thousands of direct and indirect jobs in Balochistan.
It is also anticipated to support the development of allied infrastructure, including roads, power supply systems and logistics networks, potentially transforming the Balochistan’s remote Chagai region into a major mining hub over the coming years.
