Rekodiq To Produce Gold and Copper by 2028

Staff Report:
The Rekodiq project is likely to start production by 2028 to produce gold and copper.
Rekodiqe project, revived by Canada’s Barrick Gold, is expected 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 in the project, the reserve is expected to generate approximately $74 billion in free cash flow over the next 37 years, based on consensus long-term prices.Delay in Rekodiq Case Settlement: Final Liability nears $10b

Officials said that efforts are also underway to establish refineries, which will 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 mining project, potentially involving an investment of $1 billion.

Industry officials say that Pakistan’s mining sector is increasingly attracting foreign investment, with global firms eyeing the country’s untapped mineral reserves.

The Reko Diq copper and gold project, located in Balochistan’s Chagai district, is the world’s largest untapped copper reserve and stands as a milestone for Pakistan’s mining ambitions.

The Rekodiq mine is anticipated to generate $2.8 billion in annual exports, creating thousands of jobs and transforming the local economy. A planned expansion will further increase copper production to 400,000 tonnes and gold output to 500,000 ounces per year, with an additional investment of $3.5 billion.

Despite its huge potential, the mineral sector currently contributes around 3.2% to the country’s GDP, with exports accounting for only 0.1% of the world’s total. However, with increasing exploration, foreign investment, and infrastructural improvements, Pakistan’s mining industry is poised for significant expansion.

Pakistan’s mineral-rich landscape covers an outcrop area of approximately 600,000 square kilometers. With 92 known minerals, 52 of which 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 (SMEs), providing direct employment to 300,000 workers.

Some of the country’s most notable mineral reserves include the world’s second-largest salt mines, the 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.

Recognizing the potential of the mining sector, the government is finalizing the National Minerals Harmonization Framework 2025, a comprehensive policy aimed at attracting investment and formalizing regulations at both the 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 (PMIF) 2025, scheduled to take place on April 8-9 in Islamabad. This event will bring together global ministers, leading corporations, investors, policymakers, and industry experts to discuss investment opportunities, technological advancements, and policy frameworks in the mining sector.

Globally, mineral resources play a crucial role in economic development. Many developed countries, including China, Italy, Turkey, Spain, and Brazil, have effectively leveraged their mineral wealth to fuel industrial growth, increase employment, and enhance per capita income.

Pakistan’s mineral sector holds similar promise. With strategic planning and investment, the country can improve trade, generate employment, and facilitate infrastructure development, ultimately accelerating economic progress.

Enhanced mineral exploration and value addition can significantly increase revenue. Many countries import raw minerals, refine them, and export value-added products.

Industry officials said that Pakistan has the potential to follow suit by establishing mineral processing and refining industries, leading to higher-value exports and reduced dependency on raw material exports.
Pakistan’s commitment to infrastructure development is crucial to 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 logistics 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 would be managed through a railway track that is being established in partnership with Pakistan Railway.

The railway tracks would essentially entail moving mining supplies to the mine from Karachi and eventually exporting copper concentrate and gold from the mine to Karachi for export.

Beyond Reko Diq, Balochistan harbors over 40 minerals, including oil, gas, uranium, and coal, with the potential to fuel Pakistan’s energy and industrial needs for a century.