Reko Diq Project: A new hope for Pakistan’s progress and prosperity is set to become a reality in coming years.
Barrick Gold, a Canadian mining company, is currently working on Reko Diq Project. Barrick Gold, having headquarter in Toronto, Ontario, Canada is working on various gold and copper projects in 16 sites in 13 countries.
Since, Barrick Gold is 50% owner of Reko Diq project is currently working o its feasibility study and it has acclaimed that the Reko Diq Copper and Gold Project will begin in 2028.
Reko Diq is considered to be a significant new frontier of gold and copper in the world and the first production from the giant copper and gold mine is planned in 2028.
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Balochistan province has seriously started working on successfully restructuring and restarting the stalled multi-billion dollar RekoDiq project.
According to experts, this project will not only assist to improve quality of life of people in Balochistan, but also it will boost country’s economy.
What is Reko Diq?
Reko Diq is one of the largest copper-gold reserves in the world that need to be explored.
Reko Diq is famous for its largest copper and gold reserves in the world. Experts have estimated that Copper reserves are around 5.9 billion tonnes and gold reserves are around 41.5 million oz, and an estimated mining life of the site is at least 40 years.
Barrick is owner of 50% of the Reko Diq project, and 25% percent is owned by three federal state-owned enterprises.
The remaining 25% is owned by the Province of Balochistan such as 15% is owned on a fully-funded basis and 10% on a free-carried basis.
According to the recent agreement, the project will work in two stages that will produce a total 80 million tons, yearly. The project is planned to begin production between 2027 and 2028, with an estimated initial capital cost of $7 billion.
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History of Reko Diq
Reko Diq means a sandy hill in the local language. This site exists in the Chaghi district of Balochistan province. The Riko Diq site was first time identified in 1978 during a geological survey of Pakistan.
It was identified that these gold and copper reserves can change the fate of Pakistan. Because they estimated that it had 5th largest reserves of copper and gold in the world.
The first step taken on Reko Diq was in 1993, when an agreement named the Chagai Hills Exploration Joint Venture Agreement (CHEJVA) was signed by the Balochistan Development Authority (BDA), Broken Hill Proprietary (BHP) Minerals, and others.
In November 2006, the Tethyan Copper Company (TCC) also joined the CHEJVA agreement. However, TCC raised a dispute over the project afterwards.
To settle the dispute, TCC was awarded $5.894 billion plus interest of $700,000 per day in July 2019. Additionally, Pakistan was fined by The London Court of Arbitration around $4 billion at the same time.
In March, 2022, the latest agreement was reached after an out-of-court settlement between the Pakistani government and the foreign corporations Barrick Gold and others.
Location of Reko Diq
Located in the Chaghi District of Balochistan in Pakistan, Reko Diq is a large copper and gold deposit containing 12.3 million tons of copper and 20.9 million ounces of gold in inferred and indicated resources.
Barrick Gold will complete the project in two phases. In the initial phase, it will reset the feasibility study consisting of legal, financial and environmental documents.
Why Reko Diq is so important?
As the value of minerals in western porphyries alone is $500 billion, therefore, the total value of the Reko Diq asset is close to $1 trillion. With such a valuable mineral deposit discovered by GSP in Balochistan, Pakistan should consider itself extremely fortunate.
During peak construction, the project will also employ around 7,500 people, and this project will produce roughly 4,000 long-term jobs for the people of Balochistan.
Experts have estimated that the Reko Diq project will have a major influence on Pakistan’s economy, as well.
In addition to the economic growth of Balochistan province, it will also help to generate jobs, boost the local economy, and expand investments in various sectors of life including healthcare, vocational training, clean water, food security, and others.
Full funding of the province’s stake in the mine will allow Baluchistan to profit from its 25 percent ownership’s dividends, royalties, and other advantages without having to contribute financially to its development or operation.
Future of Reko Diq
Barrick Gold, a Canadian mining company, is currently working on Reko Diq Project. Barrick Gold, having headquarter in Toronto, Ontario, Canada is working on various gold and copper projects in 16 sites in 13 countries.
Since, Barrick Gold is 50% owner of Reko Diq project is currently working o its feasibility study and it has acclaimed that the Reko Diq Copper and Gold Project will begin in 2028.
Year “2028 is targeted for first production from the giant copper and gold mine in Balochistan province,” he announced and described the project as “a significant new frontier of gold and copper in the world”.
