Barrick Gold Corporation has placed the development timeline and capital budget of the Reko Diq copper-gold project under review, citing escalating security risks in Pakistan’s Balochistan province. The announcement has introduced uncertainty around one of the country’s largest foreign investment initiatives and raised broader concerns about Pakistan’s ability to sustain major international capital commitments in high-potential but security-sensitive regions.
The Reko Diq project, located in the Chagai district of Balochistan, is widely regarded as one of the world’s largest undeveloped copper and gold deposits. Barrick has invested $849 million into the project so far, including $721 million in 2025 alone. Phase 1 of the mine carries an estimated capital budget of approximately $6 billion. The company had previously aimed to finalize a limited recourse project financing facility in the second half of 2025.
While Barrick did not detail the specific nature of the recent security incidents referenced in analyst commentary, it confirmed that escalating security risks prompted a reassessment of the project’s schedule and capital allocation. The acknowledgment has triggered scrutiny from market analysts and investors evaluating the long-term outlook of the development.
UBS analyst Daniel Major noted in a research report that following management changes, Barrick’s commitment to the project appears less certain, although he pointed out that the $650 million in capital expenditure earmarked for 2026 signals continued engagement. JPMorgan analyst Bennett Moore similarly stated that although the security situation may delay finalization of the financing package, the planned $650 million allocation for this year reflects ongoing commitment to the asset.
The project has been championed by Pakistani authorities as transformative for the national economy. Once operational, the mine is expected to produce approximately 200,000 tonnes of copper and 250,000 ounces of gold annually. Reserves are estimated to sustain mining operations for several decades, positioning Reko Diq as a long-term contributor to export revenues, fiscal inflows, and employment generation.
Beyond production output, the project is projected to generate billions of dollars in taxes and royalties over its lifespan, while creating thousands of direct and indirect jobs in Balochistan, one of Pakistan’s least developed provinces. For Islamabad, the venture has been framed as a cornerstone of resource-driven economic expansion and foreign direct investment revival.
However, security challenges in Balochistan, including periodic incidents and separatist insurgency activity, remain a structural risk factor for large-scale infrastructure and extractive projects. The review of Reko Diq’s timeline underscores the operational complexities international investors face in such environments.
The development has also affected market sentiment. Concerns over potential delays to one of Pakistan’s largest foreign-funded mining projects have introduced caution among investors. The Pakistan Stock Exchange experienced selling pressure as participants reassessed risk exposure related to the mining sector and implications for the country’s external financing outlook.
Pakistani government officials have not yet issued a formal public response to Barrick’s review announcement. The situation is expected to prompt discussions between federal authorities, the Balochistan provincial government, and Barrick’s management regarding security assurances and project continuity.
As global competition for mining capital intensifies, the trajectory of Reko Diq will serve as a critical indicator of Pakistan’s ability to balance resource potential with risk mitigation and investor confidence.
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