Reko Diq Copper Project Slows as Barrick Reviews Pakistan Security Risk

Barrick Mining

Reko Diq copper project development will slow after Barrick Mining extended its review of the major copper-gold project in Pakistan. The Canada-based miner said rising security concerns in Pakistan and the Middle East had increased uncertainty around the project’s delivery strategy.

Barrick will extend the review period by 12 months from July while keeping the project under active management. The company said the slower development pace could affect budgets and timelines.

The Reko Diq copper project is one of the most important undeveloped copper assets in the global project pipeline. Its scale gives it strategic value at a time when future copper supply remains under pressure from electrification, grid expansion, renewable energy, and industrial demand.

Security Concerns Add Risk to Copper Project Execution

Barrick first announced a review of all aspects of the Reko Diq copper project during its fourth-quarter earnings update in February. Management said it was concerned about the security situation in Balochistan, the region where the project is located.

The extended review gives Barrick more time to assess potential impacts and refine the project’s delivery strategy. However, it also delays the certainty needed for financing, contracting, construction planning, and long-term supply expectations.

The financing process is directly linked to the review. Barrick previously said the review must be completed before project financing can close, making security assessment a key condition for development progress.

Financing and Future Copper Supply Face Timing Pressure

The International Finance Corporation had announced plans to provide a new $400 million loan for Reko Diq, in addition to a proposed $300 million A-loan. These financing commitments underline the project’s importance to Pakistan’s mining sector and to future copper supply.

Barrick previously expected the first phase of Reko Diq to produce 240,000 tonnes per year of refined copper. A proposed second phase could lift output to 460,000 tonnes per year, placing the project among the world’s more significant future copper sources.

Any slowdown therefore matters beyond Pakistan. The copper market needs large new projects, but many of the most attractive deposits are located in jurisdictions where security, permitting, infrastructure, and financing risks remain difficult to manage.

The Metalnomist Commentary

The Reko Diq delay shows that copper supply growth is not only a geological question. Even world-scale deposits can move slowly when security risk, financing discipline, and project execution collide.