Reko Diq mining project to kick off in 2028, expand by 2034

February 20, 2025 (MLN): The Reko Diq Project in Balochistan is set to commence production in 2028 with an initial ore processing capacity of 45 million tonnes per annum, followed by an expansion to 90mn tonnes per annum from 2034 onwards, according to the Technical Report on the Reko Diq Project issued by Barrick Gold Corporation yesterday.

The project, jointly owned by Barrick Gold Corporation and Reko Diq Mining Company (Private) Limited, has recently undergone a Feasibility Study outlining its maiden Mineral Reserve estimate and overall resource potential. Barrick, a Canadian mining giant and the project's operator, holds a 50% indirect stake in the venture.

The Feasibility Study supports the public disclosure of the project's Mineral Resources and Reserve estimates.

Located in northwestern Balochistan, near the borders of Iran and Afghanistan, the Reko Diq Project will consist of two open-pit mines one at Western Porphyries and a satellite pit at Tanjeel along with a processing plant and supporting infrastructure.

The project is designed to produce copper concentrate containing gold, which will be sent to third-party smelters for processing.

All financial figures related to the project are reported in U.S. dollars, the report added.

Balochistan, home to approximately 6.5 million people, shares boundaries with Punjab and Sindh to the east and the Arabian Sea to the south, with Quetta as its capital.

The Reko Diq Mining Company (RDMC) is jointly owned, with Barrick Gold Corporation holding a 50% stake and the remaining 50% controlled by Pakistani stakeholders.

The Pakistani share includes a 10% free-carried interest for the Government of Balochistan, an additional 15% held by Balochistan Mineral Resources Limited (BMRL), and 25% held by the federal government via three state-owned enterprises OGDCL, GHPL, and PPL through Pakistan Minerals (Private) Ltd.

The Reko Diq Project has undergone multiple ownership changes since 1996, with extensive exploration drilling completed before being halted in 2010 due to disputes with the Pakistani government. After arbitration rulings against Pakistan in 2019, negotiations led to the project's reconstitution in December 2022.

The Government of Balochistan, the Government of Pakistan, and the Supreme Court approved new governance and fiscal agreements, ensuring a stable framework for project operations.

The latest technical report on the project outlines key recommendations to enhance mineral resource estimates, optimize mining operations, and strengthen project infrastructure.

Experts recommend further drilling in initial production areas to upgrade resource classification and expand exploration efforts to increase the mineral base, the report noted.

Additionally, refining geological models and updating mine plans based on new drilling data are suggested to improve accuracy in long-term resource planning.

To support efficient operations, the report highlights the need for continued geotechnical assessments, metallurgical testing, and engagement with national authorities for energy and infrastructure development.

The company aims to explore alternative energy sources to reduce reliance on heavy fuel oil and conduct further studies to secure supplementary water supplies.

Collaboration with key infrastructure stakeholders for power grid connectivity and port and rail upgrades is also emphasized.

On the environmental and social front, the report underscores the importance of sustained community engagement, permit approvals, and security monitoring.

Compliance with international financial and environmental standards remains a priority to facilitate project financing, the report added.

Additionally, ongoing risk assessment and mitigation strategies will be critical as the project transitions from planning to construction and full-scale operations.

Copyright Mettis Link News