The Reko Diq copper and gold project in Pakistan is expected to produce around $74 billion in free cash flow over the next 37 years. This estimate comes from Barrick Gold’s CEO, based on current long-term market prices. The development of the mine is expected to greatly benefit Pakistan’s economy.
| Key Fact | Details |
|---|---|
| Projected Cash Flow | $74 billion over 37 years |
| Main Stakeholders | Barrick Gold (50%), Government of Pakistan & Balochistan (50%) |
Ownership of the Reko Diq Mine
The Reko Diq mine is jointly owned by Barrick Gold and the governments of Pakistan and Balochistan, each holding 50% of the shares. Barrick considers this mine one of the largest undeveloped copper and gold resources in the world.
| Owner | Stake |
|---|---|
| Barrick Gold | 50% |
| Pakistan & Balochistan | 50% |
Production Timeline and Phases
The Reko Diq mine is expected to begin production by 2028, following a dispute that delayed its development. The first phase, costing $5.5 billion, will produce 200,000 tons of copper per year. This phase should be completed by 2029. A second phase will double production, with an estimated cost of $3.5 billion.
| Phase | Estimated Cost | Production Goal | Completion |
|---|---|---|---|
| First Phase | $5.5 billion | 200,000 tons of copper per year | 2029 |
| Second Phase | $3.5 billion | Double the production | No specified date |
Long-Term Reserves and Potential
The Reko Diq mine is expected to have copper and gold reserves lasting 37 years. However, Barrick’s CEO mentioned that upgrades and expansions could extend the life of the mine for many more years.
| Reserves | Expected Duration | Potential for Extension |
|---|---|---|
| Copper & Gold Reserves | 37 years | Could be extended through upgrades |
Economic Benefits for Pakistan
Pakistan is expected to receive significant dividends, royalties, and taxes from the mine. The mine’s $74 billion in cash flow will provide much-needed financial support for the country, which currently has only about $11 billion in foreign reserves.
| Financial Benefit | Amount/Details |
|---|---|
| Total Cash Flow | $74 billion over 37 years |
| Pakistan’s Foreign Reserves | Around $11 billion |
Infrastructure Development Plans
Barrick Gold is working with Pakistan’s railway authorities and infrastructure providers to improve transportation facilities for copper exports. This includes upgrading the coal terminal in Port Qasim, located near Karachi.
| Infrastructure Focus | Details |
|---|---|
| Port Qasim Terminal | Revamping to transport copper |
| Railway Development | Discussions on improving copper transportation networks |
Potential Foreign Investments
The Saudi Arabian mining company, Manara Minerals, is considering investing in the Reko Diq mine. Pakistan is also exploring talks with other Gulf countries for mining investments.
| Investor | Possible Investment | Timeline |
|---|---|---|
| Manara Minerals | Potential investment in Reko Diq | Within the next two quarters |
| Gulf Countries | In talks for mining opportunities | Ongoing discussions |
Summary
The Reko Diq project offers huge potential for Pakistan’s economy, with $74 billion in cash flow expected over 37 years. This project, along with improvements in infrastructure and potential foreign investments, could significantly boost Pakistan’s financial stability and global trade.
