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The Reko Diq project in Balochistan is projected to generate around $74 billion in cash over the next 37 years, according to Mark Bristow, CEO of Barrick Gold, one of the joint owners.
The federal government of Pakistan and the Balochistan provincial government each hold a 50% stake in the Reko Diq mine, while Barrick Gold owns the remaining half.
In an interview with Dawn, Bristow described the mine as one of the world’s largest undeveloped copper-gold deposits, with its development poised to significantly impact Pakistan’s struggling economy.
The project, which faced delays due to a lengthy dispute resolved in 2022, is expected to begin production by the end of 2028. Barrick Gold estimates that the initial capital expenditure to develop the first phase—referred to as a starter mine—will be $5.5 billion.
This phase will produce 200,000 tons of copper concentrate and 250,000 ounces of gold annually. A subsequent expansion could require an additional $3.5 billion, doubling the mine’s capacity to 400,000 tons of copper and 500,000 ounces of gold.
The expected $74 billion in free cash flow has the potential to generate significant dividends, royalties, and taxes for Pakistan, which currently holds approximately $11 billion in foreign reserves.