Barrick Delays Major Reko Diq Copper-Gold Project in Pakistan Citing Regional Security Concerns

 

Islamabad, Canadian mining giant Barrick has decided to slow development and extend the review period of its ambitious Reko Diq copper and gold project in Balochistan by 12 months, citing heightened security risks stemming from the ongoing conflict in the Middle East and deteriorating conditions in Pakistan.

The company informed its Pakistani partners this week that it will reduce the pace of development work starting in July 2026 while continuing to manage the project actively. This decision is likely to affect previously announced budgets and timelines for what is one of the world’s largest undeveloped copper-gold deposits.

Barrick emphasised that it still believes in the long-term value of Reko Diq but considers it necessary to conduct a more thorough assessment of potential impacts on the project’s delivery strategy amid the current regional uncertainties.

Details of the Delay

The review of the Reko Diq project, which began earlier in 2026, has now been extended until July 2027. During this additional 12-month period, Barrick plans to scale back development activities and associated spending. The company described the move as a prudent step in response to both the escalation of security issues in Pakistan and the broader instability caused by the Iran-related conflict.

Reko Diq is located in the remote Chagai district of Balochistan, close to the Pakistan-Iran border. The project’s proximity to the conflict zone has raised concerns about supply chains, worker safety, and overall operational risks. Barrick has been in a joint venture with Pakistani entities, including the provincial government of Balochistan, to develop the massive deposit.

Background Context

The Reko Diq project has a long and complicated history. Discovered decades ago, it was previously mired in legal disputes before Barrick and its partners reached a landmark agreement in 2022 to restart development. The deposit is estimated to contain significant reserves of copper and gold, with the potential to become one of the largest mines of its kind globally and a major contributor to Pakistan’s economy through revenue, employment, and infrastructure development.

Work on the project had been progressing, with expectations of first production in the early 2030s. However, the recent escalation of conflict between the US, Israel, and Iran — including threats to the Strait of Hormuz and increased regional tensions — has created new challenges for large-scale investments in border areas.

Pakistan has been grappling with its own security challenges in Balochistan, where insurgent groups have occasionally targeted development projects. The combination of these domestic issues with the external shock from the Middle East war has prompted Barrick to adopt a more cautious approach.

Why This News Matters

The delay in the Reko Diq project is a significant setback for Pakistan’s ambitions to attract large-scale foreign investment in its mining sector. The project was expected to generate billions of dollars in revenue over its lifetime, create thousands of jobs, and boost infrastructure in one of the country’s least developed provinces. Any postponement could delay these economic benefits and affect government revenue projections.

For Barrick, the decision reflects the growing impact of geopolitical risks on global mining operations. Multinational companies are increasingly forced to reassess major investments when regional conflicts threaten supply lines, personnel safety, or long-term stability.

The development also highlights Pakistan’s vulnerability to external shocks. As an energy-importing nation already feeling the effects of higher oil prices due to the Iran conflict, the country now faces another challenge in translating its mineral wealth into economic growth.

Analysts suggest that while the delay is disappointing, it provides an opportunity for Pakistani authorities and Barrick to strengthen security arrangements, improve infrastructure, and address local concerns in Balochistan before accelerating development.

Barrick has reiterated its long-term commitment to the project, but the extended review period underscores how quickly geopolitical events can influence major investment decisions in frontier markets.

PakInsight Hub will continue to monitor developments related to the Reko Diq project and their implications for Pakistan’s mining sector and economy.