logo
Reko Diq mine set to start production by 2028

Reko Diq mine set to start production by 2028

Express Tribune12-03-2025

Pakistan has already chalked out a $1.9 billion funding plan to execute the Reko Diq copper and gold mining project. Total project funding has been estimated at $4.297 billion. photo: file
Listen to article
The Reko Diq gold and copper mining project is expected to start production by 2028 and generate a free cash flow of around $74 billion.
According to a plan unveiled by Oil and Gas Development Company Limited, the Reko Diq project, revived by Canada's Barrick Gold, is projected to start producing copper and gold by 2028, with an initial investment of $5.5 billion.
According to Mark Bristow, CEO of Barrick Gold, which owns a 50% stake, the reserves are expected to generate $74 billion in free cash flow over the next 37 years, based on long-term prices.
Officials said efforts were also underway to establish refineries, which would allow Pakistan to move up the value chain and reduce reliance on raw material exports.
Saudi Arabian mining company Manara Minerals will acquire a 15% stake in the project, with potential investment of $1 billion.
Industry officials say Pakistan's mining sector is increasingly attracting foreign investment as global firms eye the country's untapped mineral reserves.
The Reko Diq project, located in Balochistan's Chagai district, has the world's largest untapped copper reserves. The mine is anticipated to generate $2.8 billion in annual exports while creating thousands of jobs and transforming the local economy.
Its planned expansion will increase production to 400,000 tonnes of copper and 500,000 ounces of gold per year through an additional investment of $3.5 billion.
Despite its huge potential, the mineral sector currently contributes only around 3.2% to Pakistan's gross domestic product (GDP) and its exports account for a meagre 0.1% of the world's total. However, with increasing exploration, foreign investment and infrastructure improvement, the mining industry is poised for significant growth.
Pakistan's mineral-rich landscape covers an outcrop area of approximately 600,000 square kilometres. Of the 92 known minerals, 52 are commercially exploited. Pakistan produces an estimated 68.52 million metric tons of minerals annually.
The sector supports over 5,000 operational mines and 50,000 small and medium enterprises, providing direct employment to 300,000 workers.
Some of the country's most notable mineral reserves include the world's second-largest salt mines, fifth-largest copper and gold deposits and significant coal reserves. Furthermore, the country holds vast quantities of bauxite, gypsum and precious stones such as ruby, topaz, and emerald, which offer considerable export potential.
Recognising the potential of the mining sector, the government is finalising the National Minerals Harmonisation Framework 2025, a comprehensive policy aimed at attracting investment and formalising regulations at both provincial and national levels. The framework will provide incentives to local and foreign investors, streamline mining regulations and facilitate public-private partnerships.
A significant milestone in this regard is the Pakistan Minerals Investment Forum 2025, scheduled to take place on April 8-9 in Islamabad. This event will bring together ministers from across the globe, leading corporations, investors, policymakers and industry experts for discussing investment opportunities, technological advancements and policy frameworks in the mining sector.
Pakistan's commitment to infrastructure development is crucial for unlocking the full potential of the mining industry. The China-Pakistan Economic Corridor (CPEC) is playing a pivotal role in transforming the transportation and export of mineral resources.
Gwadar Port and Port Qasim are set to enhance mineral exports while improved road and rail networks will facilitate better connectivity between mining regions and industrial hubs. Logistics for the Reko Diq mine will be managed through a railway track that is being established in partnership with Pakistan Railways.

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

An untenable budget
An untenable budget

Express Tribune

timean hour ago

  • Express Tribune

An untenable budget

Listen to article The federal government has laid out an ambitious budget of Rs17.573 trillion for FY26 while pinning its hopes on an exalted growth rate of 4.2%. This euphoric document has come a day after the Economic Survey posted a dismal picture of the economy — all targets were missed for the third consecutive year amid a growth rate of mere 2.7%. The budget proposes a cut in overall spending and banks heavily on tightening tax measures while estimating inflation at 7.5%. The lion's share from the deficit-laden economy goes to debt-servicing, at Rs8.207 trillion. And as foreseen, the defence takes a major share from revenue collection with a 20% rise — at Rs2,550 billion or 1.97% of GDP. The hope-line seems to be an estimated $71 billion in cash flows, $7 billion in taxes and $8 billion in royalties, apart from $5 billion from Reko Diq as well as privatisation of the national flag carrier, PIA, and Roosevelt Hotel in New York. The government is also expecting $25 billion from IT exports over the next five years. Moreover, a surplus in the current account, rise in remittances to the tune of $32 billion and the stability of the rupee are other hallmarks that posits a yearning of the economy's turnaround amidst positive ratings from Moody's and Fitch. The budget has set a tax collection target of Rs14,131 billion, an 8.95% increase from previous year, wherein expenditure of civil administration would be Rs0.97 trillion, pensions Rs1.06 billion, and power and other sectors Rs1.19 billion. The finance minister, while delivering the budget speech, pointed out that 390,000 high-value non-filers of tax were identified and Rs300 million recovered from them, and at the same time the revenue machinery has been able to post a 100% increase in the number of tax filers, taking the revenues to Rs105 billion. A 10% raise in salaries from grade 1-20 employees, a 7% hike in pensions and Rs6,000 allowance for the disabled constitute the only voluble theme of the budget speech. The government also promised to reduce the income tax slabs by balancing inflation and take-home income. An 18% tax on imported solar panels and imposition of taxes on online businesses and digital marketplaces are among the features making the budget anti-growth. However, no new tax on fertiliser and pesticides has been proposed. Similarly, the proposition to reduce the super tax to 5% on corporate sector earning from Rs200 million to Rs500 raises eyebrows given that all other sectors are reeling under pressure. Last but not least, the restive province of Balochistan as well as the merged districts in Khyber-Pakhtunkhwa, which had a leeway with taxes in the past years, will now have to pay sales tax starting from 10% for five years — and that is not a sound economic initiative. The most startling revelation is the confession from the finance wizard that the revenue machinery lacks the muscle to achieve the tax targets. This means reforms and not statistics or book-keeping should be the focus of the economy.

TSX rises on energy boost; US-China talks in focus
TSX rises on energy boost; US-China talks in focus

Business Recorder

time7 hours ago

  • Business Recorder

TSX rises on energy boost; US-China talks in focus

Canada's main stock index rose on Tuesday as rising oil prices boosted the energy sector, while investors awaited key developments from the second day of the U.S.-China trade negotiations. The S&P/TSX composite index, up 0.2% at 26,420.31 points, was hovering near the record high levels reached on Friday. U.S. Commerce Secretary Howard Lutnick said trade talks with China were going well as the two sides met for a second day in London. Any progress in the negotiations is likely to bring relief to the markets given that President Donald Trump's often-shifting tariff announcements and swings in U.S.-China ties have affected global supply chains and economic growth worldwide. 'The Canadian markets are benefiting from obviously the optimism and the positive direction of U.S. equity markets,' said Matt Skipp, President of SW8 Asset Management. 'And I think the U.S. markets are moving higher on the assumption that Trump will not do anything that will hurt American assets, equities etc.' White House economic adviser Kevin Hassett said on Monday the U.S. was likely to agree to lift export controls on some semiconductors in return for China speeding up the delivery of rare earths. Almost all major sectors were trading in the green on the TSX, with energy shares leading the way as oil prices advanced, buoyed by U.S.-China trade talks and a dip in Saudi Arabian crude supply to China. Consumer staples and consumer discretionary sectors gained 1% and 0.7%, respectively. Bucking the trend, the materials sector was down almost 1%. Looking ahead, markets will focus on Wednesday's U.S. inflation report, which will influence expectations for Federal Reserve interest-rate cuts.

Reko Diq mining company holds ‘supplier road show' in Karachi
Reko Diq mining company holds ‘supplier road show' in Karachi

Business Recorder

time30-05-2025

  • Business Recorder

Reko Diq mining company holds ‘supplier road show' in Karachi

KARACHI: Reko Diq Mining Company (RDMC), operated by Barrick Mining Corporation, hosted the Pakistan Supplier Road Show in Karachi to connect with prospective vendors and suppliers from across the country. The event was part of RDMC's ongoing efforts to build a robust, inclusive, and competitive supply chain for the Reko Diq project, one of the world's largest undeveloped copper-gold mines. The road show, led by RDMC's Supply Chain team, attracted over 200 companies, including small and medium enterprises from Balochistan as well as national-level firms. Participants were provided an overview of the Reko Diq project, its operational values, procurement strategy, tax regime, community development initiatives, hiring policies and opportunities for partnership during the construction and operational phases. The Karachi expo follows a similar Vendors Expo held earlier in Quetta last year. The forum allowed potential partners to ask questions, understand RDMC's standards and expectations, and explore registration processes for becoming qualified suppliers. Copyright Business Recorder, 2025

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store