Barrick Gold to invest $7bn in Reko Diq

The mining industry has an opportunity to flourish with Foreign Direct Investment (FDI) and to add a significant contribution to Pakistan’s economy. Barrick Gold Company will invest in the Reko Diq project in Pakistan. Mark Bristow, president of Barrick Gold Company, believes Reko Diq will be the largest gold-copper deposit in the world. He
revealed his desire to the Parliament & Supreme Court to review the deal for legal process due to the long-term importance of the investment.

Reko Diq Project was on hold due to a dispute regarding licensing between Pakistan and foreign companies since 2011. International Court of arbitration had given its decision in favor of foreign organizations and against Pakistan. The government of Pakistan made a lot of effort to get rid of a fine of US$11 billion. Political instability in Pakistan can
cause failure/delay of the project. To secure investment & timely execution of the project, Barrick Gold required legal work.

Reko Diq Project requires the most significant FDI of US$ 7 billion, which is twice the estimated in 2010. The FDI will disburse in two phases; US$4 billion in Phase-I & US$3 billion in Phase II. International Finance Corporation (IFC) will provide insurance for the project.

The production process will start in 2027-28. Estimates of the feasibility show that the Reko Diq will produce 400,000 tons of gold and 200,000 tons of copper. Barrick stated that the government of Baluchistan and its people should be given a fair
share in terms of royalty and other benefits. Share of the government of Pakistan is 50%, and the Baluchistan government will have royalty, which will increase with the completion of the project, US$ 5 million in the first year, US$ 7.5 million in 2nd year, and afterward US$ 10 million per year.

It will employ 7,500 people, and once production starts, it will provide 4,000 permanent jobs for 40 years, a lifetime of a mine. FDI in Reko Diq will expand the copper industry, gold industry, and international trade, ultimately boosting Pakistan’s economy.