Islamabad: Pakistan is considering the possible participation of Chinese companies in the Reko Diq copper and gold project as authorities and Barrick Gold officials explore options to reduce development costs, address security challenges in Balochistan and accelerate project execution, according to sources familiar with the matter.
The matter was reportedly discussed in recent meetings between Pakistani officials and Barrick Gold Chairman John Thornton, where project execution plans and potential areas of collaboration were reviewed. Sources said Barrick Gold has expressed willingness to accommodate Chinese firms in certain segments of the project, although no formal decision has been announced.
Officials from the Petroleum Division have not issued any official confirmation regarding the development. Sources added that the project’s financial close has been delayed due to technical and financial considerations, although development work continues and commercial production is still expected to begin by the end of 2028.
Located in Balochistan’s Chagai district, Reko Diq is considered one of the largest mining investments in Pakistan’s history. According to the latest feasibility estimates, the project is expected to generate more than USD 74 billion in free cash flow over its 37-year life, with significant contributions to exports, foreign exchange earnings and broader economic activity.
The study indicates that the cost of the first phase has increased to USD 6.8 billion, reflecting a 58 percent rise compared to earlier estimates. The increase has been attributed to global inflation, expanded production capacity and additional infrastructure requirements.
Barrick Gold holds a 50 percent stake in the project, while the remaining 50 percent is jointly owned by the federal government and the Government of Balochistan through state-owned entities, including Oil and Gas Development Company Limited, Pakistan Petroleum Limited and Government Holdings Private Limited.
Under the current development plan, Phase-I is expected to produce around 200,000 tonnes of copper annually. Following the completion of Phase-II, annual copper output is projected to rise to approximately 400,000 tonnes.
Average annual gold production is estimated at nearly 500,000 ounces, with total lifetime output projected at 13.1 million tonnes of copper and 17.9 million ounces of gold.
Sources said Chinese companies are being considered due to their capacity to execute large-scale infrastructure projects in challenging environments. Officials believe their involvement could help reduce costs, shorten construction timelines and mitigate operational risks, while Barrick Gold remains committed to advancing the project.
Meanwhile, interest from international financiers is also increasing. The International Finance Corporation (IFC) has recently announced an additional USD 400 million in financing, raising its total commitment to USD 700 million.
Industry observers say the project has the potential to significantly transform Pakistan’s mining sector by creating employment opportunities, developing infrastructure in Balochistan and generating substantial revenues through taxes, royalties and profit-sharing arrangements.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
