Barrick Gold Corporation is reviewing its budget and timeline for the Reko Diq Project in Balochistan due to rising security concerns. The company has already invested $849 million in the project, including $721 million in 2025, against a Phase 1 capital budget of around $6 billion.
Initially, Barrick planned to sign a limited recourse project financing facility in the second half of 2025. However, recent security incidents in the region have made the timeline uncertain. JPMorgan noted that these security-related reviews could delay the financing package. Despite this, the allocated capital spending indicates Barrick remains committed to the Reko Diq Project.
The review has sparked concerns about Pakistan’s ability to attract and retain large foreign investment in areas with security risks. So far, government officials have not made any public comments regarding the developments.
The Reko Diq Project is located in Chagai district, Balochistan, a region affected by periodic security incidents and separatist unrest. Barrick did not provide details about the latest incidents but acknowledged the heightened security risks in the area.
Once operational, the mine is expected to produce approximately 200,000 tons of copper and 250,000 ounces of gold annually. The project is projected to operate for several decades and is expected to generate substantial tax revenue, royalties, and employment opportunities for the province.
Despite current uncertainties, Barrick’s review signals that the company continues to view the Reko Diq Project as a long-term investment. Officials believe that, if completed, the mine will play a crucial role in strengthening Balochistan’s economy and Pakistan’s overall mining sector.
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The company remains focused on maintaining safety and ensuring that the project proceeds responsibly, balancing investment goals with regional security considerations.
