Reko Diq mine set to start production by 2028
Pakistan has already chalked out a $1.9 billion funding plan to execute the Reko Diq copper and gold mining project. Total project funding has been estimated at $4.297 billion. photo: file
The Reko Diq gold and copper mining project is expected to start production by 2028 and generate a free cash flow of around $74 billion.
According to a plan unveiled by Oil and Gas Development Company Limited, the Reko Diq project, revived by Canada's Barrick Gold, is projected to start producing copper and gold by 2028, with an initial investment of $5.5 billion.
According to Mark Bristow, CEO of Barrick Gold, which owns a 50% stake, the reserves are expected to generate $74 billion in free cash flow over the next 37 years, based on long-term prices.
Officials said efforts were also underway to establish refineries, which would allow Pakistan to move up the value chain and reduce reliance on raw material exports.
Saudi Arabian mining company Manara Minerals will acquire a 15% stake in the project, with potential investment of $1 billion.
Industry officials say Pakistan's mining sector is increasingly attracting foreign investment as global firms eye the country's untapped mineral reserves.
The Reko Diq project, located in Balochistan's Chagai district, has the world's largest untapped copper reserves. The mine is anticipated to generate $2.8 billion in annual exports while creating thousands of jobs and transforming the local economy.
Its planned expansion will increase production to 400,000 tonnes of copper and 500,000 ounces of gold per year through an additional investment of $3.5 billion.
Despite its huge potential, the mineral sector currently contributes only around 3.2% to Pakistan's gross domestic product (GDP) and its exports account for a meagre 0.1% of the world's total. However, with increasing exploration, foreign investment and infrastructure improvement, the mining industry is poised for significant growth.
Pakistan's mineral-rich landscape covers an outcrop area of approximately 600,000 square kilometres. Of the 92 known minerals, 52 are commercially exploited. Pakistan produces an estimated 68.52 million metric tons of minerals annually.
The sector supports over 5,000 operational mines and 50,000 small and medium enterprises, providing direct employment to 300,000 workers.
Some of the country's most notable mineral reserves include the world's second-largest salt mines, fifth-largest copper and gold deposits and significant coal reserves. Furthermore, the country holds vast quantities of bauxite, gypsum and precious stones such as ruby, topaz, and emerald, which offer considerable export potential.
Recognising the potential of the mining sector, the government is finalising the National Minerals Harmonisation Framework 2025, a comprehensive policy aimed at attracting investment and formalising regulations at both provincial and national levels. The framework will provide incentives to local and foreign investors, streamline mining regulations and facilitate public-private partnerships.
A significant milestone in this regard is the Pakistan Minerals Investment Forum 2025, scheduled to take place on April 8-9 in Islamabad. This event will bring together ministers from across the globe, leading corporations, investors, policymakers and industry experts for discussing investment opportunities, technological advancements and policy frameworks in the mining sector.
Pakistan's commitment to infrastructure development is crucial for unlocking the full potential of the mining industry. The China-Pakistan Economic Corridor (CPEC) is playing a pivotal role in transforming the transportation and export of mineral resources.
Gwadar Port and Port Qasim are set to enhance mineral exports while improved road and rail networks will facilitate better connectivity between mining regions and industrial hubs. Logistics for the Reko Diq mine will be managed through a railway track that is being established in partnership with Pakistan Railways.