ISLAMABAD: Barrick Gold is in the final stages of reviewing security arrangements for Pakistan’s flagship Reko Diq copper-gold project with local law enforcement agencies, while also working with the government to streamline procurement processes as development of one of the world’s largest undeveloped copper-gold deposits gathers pace, a senior official said Wednesday.
The review follows a recent visit to Pakistan by Barrick Gold Executive Chairman John L. Thornton and the company’s senior leadership team, who assessed project progress and discussed financing, equipment procurement and security measures for the multibillion-dollar mining venture in the southwestern province of Balochistan.
“Barrick and the law enforcement agencies are finalising the review of security protocol,” Ahmed Hayat Lak, managing director of state-owned Oil and Gas Development Company Limited (OGDCL), told The News. He said the project site remains insulated from security threats but additional measures could further strengthen protections.
The security assessment comes months after Barrick announced in February that it was reviewing all aspects of the project following a deterioration in the security environment and a rise in militant activity. The review was triggered by coordinated attacks in late January that raised concerns about the operating environment in Balochistan, a mineral-rich but restive province.
Lak said international lenders backing the project had expressed confidence in existing security arrangements after conducting their own assessments. He added that additional financiers have shown interest in participating in the project, signaling continued investor appetite despite security concerns.
The two sides are also discussing the acquisition of heavy-duty mining equipment through competitive bidding as construction plans advance. Under project agreements, security remains the responsibility of Pakistan government as the host country.
Reko Diq, jointly owned by Barrick and the governments of Pakistan and Balochistan, is regarded as one of the world’s most significant copper-gold developments. Barrick holds a 50% stake, while the remaining 50% is shared equally between the federal and provincial governments. The federal government’s share is held through OGDCL, Pakistan Petroleum Limited and Government Holdings (Private) Limited.
The project is scheduled to be developed in two phases, with the first phase targeting ore processing capacity of 45 million tonnes annually from 2028 and a second expansion phase increasing capacity to 90 million tonnes per year from 2034.
Projected to generate about $70 billion in free cash flow and $90 billion in operating cash flow over its life, Reko Diq is central to Pakistan’s efforts to attract foreign investment, boost exports and unlock the economic potential of its vast mineral resources.
Pakistani officials said the government remains closely engaged with Barrick to keep the project on schedule while simultaneously pursuing broader plans to accelerate development of the country’s mining and energy sectors.
Alongside its minerals strategy, the government is preparing a national Energy Security Policy aimed at reducing vulnerability to external supply disruptions. Officials said studies are being planned to assess the feasibility of establishing strategic fuel reserves and that discussions are underway with friendly countries on potential bonded fuel storage arrangements.
