Barrick Mining's interim CEO said on Tuesday that the company remains committed to its Rekodik copper mine in Pakistan, one of the world's largest undeveloped copper deposits, following reports that the company might withdraw from the project.
The $7 billion project, located in the remote and insurgency-ridden western province of Balochistan, is being developed by Barrick in partnership with Pakistani authorities on an equal footing, and is expected to begin production by the end of 2028.
According to a Reuters report this month, citing sources familiar with the company's thinking, Barrick's board had raised the possibility of splitting up the company's assets, which could include a complete sale of the Rekodik mine and the company's assets in Africa.
"Barrick remains committed to the Rekodik project and Pakistan," Mark Hill told Reuters.
Security, Scale, Interests
Balochistan is frequently targeted by separatists and jihadists, making security a major challenge for the mine. Furthermore, the project requires upgrading the railway to transport copper concentrate to Karachi for processing and export.
Several lenders, including the International Finance Corporation and the Asian Development Bank, are raising over $2.6 billion in financing.
The Rekodik project added 13 million ounces of gold reserves to Barrick Gold in 2024 and is expected to produce 200,000 tonnes of copper annually in its first phase, doubling production after expansion. Free cash flow is projected to exceed $70 billion over 37 years.
Mining Activity in Pakistan
Barrick's comments highlight the importance of the Rekodik mine to Pakistan and the company, with Islamabad counting on it to solidify its mining strategy as the Canadian mining company moves forward with one of its largest long-term projects.
This month, sources familiar with the company's thinking told Reuters that board members and some shareholders were concerned that the company's riskier assets in Pakistan and Africa could put pressure on its valuation compared to its safer North American operations, especially in the context of any potential acquisitions.
After years of legal battles, Barrick returned to Pakistan in 2022, and the mine has since become a flagship investment project in Pakistan as the country seeks to attract more capital into its mining sector.
