Barrick gets provisional nod for $3bn Reko Diq financing

KARACHI: Barrick Gold Corp has provisionally approved plans to develop the massive Reko Diq copper-and-gold project in Pakistan and expects to finalise a $3 billion financing package for the mine in the third quarter of 2025, according to a senior company official, reports Bloomberg.

Speaking in an interview in Islamabad on Tuesday, Barrick Chief Executive Officer Mark Bristow told Bloomberg that financing for the project will be led by the World Bank’s International Finance Corporation, with backing from state funding agencies in the US, Germany, Japan, and other countries.

The Toronto-based company said earlier that its partners -- the governments of Pakistan and Balochistan -- have also provisionally signed off on the first phase of development. Major construction is expected to begin this year, with first production targeted for 2028. The full $6 billion plan remains contingent on securing the proposed financing, according to Barrick.

Bristow appeared on Geo TV’s Naya Pakistan show on Wednesday, hosted by Shahzad Iqbal, where he lauded the Pakistan Minerals Investment Forum as a significant milestone for both Barrick and the country.

He said the Reko Diq project is believed to hold one of the world’s largest reserves of copper and gold, with an initial estimated value of $70 billion that could potentially double.

Acknowledging the legal hurdles that the Reko Diq project had to face, the CEO added that important projects like Reko Diq require dedication and consistency. He added that when he joined Barrick Gold in 2019 he suggested the government of Pakistan to work out a solution that could benefit all the parties involved; according to Bloomberg, the project was halted in 2011 when Pakistani authorities declined to issue a development licence to Barrick and its then-partner Antofagasta Plc Following a lengthy legal battle, Antofagasta exited the venture in 2022, with the Pakistani federal and provincial governments taking over its stake.

Barrick now owns 50 per cent of the project, while the remainder is held by Pakistan and Balochistan. Commenting on the project’s high value and potential benefits for the country. Bristow said that [Barrick Gold] is also working for the uplift of the local communities, adding that “we have seen how countries take advantage of the minerals they possess while simultaneously neglecting the communities that are part of such projects.”

Bristow agreed that the Reko Diq project will remain among the top 10 gold reserves in the world for a long time. He also called Reko Diq “just a starter mine”.

Barrick, the world’s second-largest gold producer, is advancing Reko Diq as part of its strategy to focus on large-scale ‘tier one’ assets and to expand into copper -- a key commodity in the global energy transition. Located in the remote and politically sensitive province of Balochistan, near the borders with Afghanistan and Iran, Reko Diq is considered one of the world’s largest untapped reserves of copper and gold.

Per Bloomberg, the project has also attracted interest from Saudi Arabia, where the state-owned mining company Ma’aden is reportedly in advanced discussions to acquire a significant stake from the Pakistani side.

Bristow also confirmed that Barrick has signed a memorandum of understanding with Pakistan’s Mari Energies Ltd to explore two additional mineral properties adjacent to the Reko Diq site, indicating the company’s wider interest in the region.

“Miners are merely the custodian of national assets. Our work is to deliver value to all stakeholders involved. Our goal is to ensure that the communities in the vicinity of mines are benefitted, including providing safe drinking water to people,” Bristow told Geo.

Regarding employment and local impact, Bristow said that at the peak of construction, around 7,500 jobs will be created. Once operational, Reko Diq will provide permanent employment to approximately 4,000 people, with a focus on training and employing locals.

However, the push to develop Reko Diq comes amid rising security concerns in Balochistan. Last month, separatist militants hijacked a train in the province, resulting in over 50 fatalities. The attack underscored the security challenges facing Pakistan as it seeks to revive a struggling economy and draw foreign investment, the Bloomberg report added.

According to Reuters, World Bank private investment arm to provide $300m in debt for Pakistan’s copper gold mining project Reko Diq