Barrick warns Reko Diq costs and timeline could rise significantly as Pakistan project review is extended

Barrick said the review of its Reko Diq copper-gold project in Pakistan will continue until mid-2027, with the company now warning of potentially significant increases to both the capital budget and development timeline.

Barrick Mining said it expects there could be significant increases to the previously disclosed capital budget and development timeline for its Reko Diq copper-gold project in Pakistan, as the company slows development and extends its project review to mid-2027.

The company said the decision follows the preliminary findings of the review first referenced in early February and the more recent escalation in security issues in Pakistan and the broader Middle East. Barrick added that, while development activity will be slowed, the project will remain under active management with reduced capital spending during the review period.

Reko Diq, located in Pakistan’s Balochistan province, is one of the world’s largest undeveloped copper-gold deposits and is held through a 50-50 partnership between Barrick and Pakistani stakeholders. Barrick has described the project as a key pillar of its strategy to build a Tier 1 copper business.

Under the company’s previously disclosed plan, Phase 1 was expected to require between $5.6 billion and $6.0 billion in capital, excluding financing costs, while Phase 2 was estimated at $3.3 billion to $3.6 billion. First production had been targeted by the end of 2028, but Barrick now says those assumptions may no longer hold as the review continues.

Security concerns push Barrick to reassess scope, financing and delivery

Barrick said the extended review will allow it to assess the evolving security situation in a more comprehensive way, along with capital requirements, project financing, overall scope and the revised timeline for delivery. The company said development of Phase 1 had been approved on the basis of maintaining active oversight while reducing near-term spending.

The company also reiterated that it continues to believe in the long-term value of Reko Diq despite the setback. Barrick said it intends to keep supporting its existing in-country community and social programs, underscoring the project’s importance to the local area even as development activity is slowed.

Barrick has been advancing Reko Diq for several years in partnership with the governments of Pakistan and Balochistan. In earlier company materials, the project was described as a major long-term copper and gold growth asset, with second-phase design capacity expected to reach 400,000 tonnes of copper and 500,000 ounces of gold per year.

Reko Diq remains central to Barrick’s long-term copper ambitions

Barrick has consistently positioned Reko Diq alongside Lumwana as one of its major copper growth projects. In previous updates, the miner said both projects were central to its strategy of expanding exposure to copper as demand rises over the long term.

Even with the review extension, the project’s long-term economic potential remains substantial. Barrick has previously said Reko Diq could generate more than $70 billion in free cash flow and $90 billion in operating cash flow over a projected 37-year mine life, highlighting why the company continues to treat it as a strategic asset despite the security-related delay.

The latest update signals that Barrick is taking a more cautious approach to execution as geopolitical and regional security risks complicate one of the mining industry’s most closely watched undeveloped copper projects.