Latest news with #RekoDiq
Business Recorder
5 days ago
- Business
- 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
News18
6 days ago
- Business
- News18
Beijing Snubs Islamabad, Seeks Direct Talks With Baloch Groups To Secure CPEC
Reported By : Edited By: Last Updated: May 28, 2025, 17:04 IST Projects like Gwadar Port and the Reko Diq mining initiative have made little progress, and Beijing is now under pressure to move forward.(Reuters/File) CNN-News18 has learnt from top intelligence sources that China is now pushing for direct engagement with Baloch groups, bypassing the Pakistan Army, to secure its investments in Balochistan and accelerate progress on the stalled China-Pakistan Economic Corridor (CPEC). This intent was formally conveyed to Pakistan Defence Minister Khawaja Asif during his recent Beijing visit. China's desire stems from continued threats to CPEC, despite investments of over $60 billion, as Baloch insurgents repeatedly target key infrastructure. Projects like Gwadar Port and the Reko Diq mining initiative have made little progress, and Beijing is now under pressure to move forward — especially as the US has shown interest in Balochistan's vast mineral reserves. Sources confirm that China wants to talk directly to the Baloch to speed up the process and signal positively to other Belt and Road Initiative (BRI) partners. China has struggled for over a decade and now believes that the real custodian of Balochistan is the Balochi people. It recognises that relying solely on the Pakistan Army has resulted in body bags and broken promises. Chinese officials argue that direct negotiations will reduce insurgent attacks, protect their personnel, and help ensure that mineral extraction can proceed uninterrupted. They believe this shift could ease the Pakistan Army's security burden, recast China's role from aggressor to stabiliser, and further strengthen China-Pakistan relations. However, Baloch distrust runs deep, especially after the 2019 secret talks in Dubai collapsed over transparency issues. While some factions are open to dialogue, others remain sceptical of China's intentions. The groups are divided on key demands — including autonomy, revenue-sharing, and an end to military operations. Before any formal negotiations, China will have to engage with each group separately and work towards consolidating a common position, a process that will be complex and politically sensitive. The stakes are high. Balochistan holds an estimated $6 trillion in untapped minerals — including copper, gold, and lithium — critical for China's green-tech ambitions. Direct engagement would bypass bureaucratic delays, ensure long-term supply chain security, and let China collect all mineral wealth with reduced risk. China is also reportedly interested in establishing police posts along CPEC routes, a proposal the Baloch people have firmly resisted. This kind of engagement is not seen as beneficial to anyone except China, as the Baloch risk losing their sovereignty, and Pakistan could lose control over the region. Swipe Left For Next Video View all Adding to the tension is the fact that China receives 91 per cent of the revenue generated by Gwadar port, leaving only a marginal share for local communities. This imbalance has deepened resentment among the Baloch, who see themselves as being excluded from the economic benefits of projects on their own land. As a result, Baloch groups continue to demand greater autonomy, a just share in resource distribution, and an end to military operations and human rights abuses in the region. This development is a potential blow to Pakistan's military and government, who now face mounting pressure to address longstanding issues. With Beijing charting its own course, the future of Balochistan — and Pakistan's role in it — hangs in the balance. News world Beijing Snubs Islamabad, Seeks Direct Talks With Baloch Groups To Secure CPEC | Exclusive
Business Recorder
7 days ago
- Business
- Business Recorder
Chairman Railways tells Senate body: 38 projects worth Rs260.085bn underway in 2024–25
ISLAMABAD: Chairman of Railways Tuesday informed Senate Standing Committee on Railways that a total of 38 projects were underway, with a total cost of Rs 260.085 billion during 2024–25. The meeting of the Senate Standing Committee on Railways, chaired by Senator Jam Saifullah Khan, was convened Tuesday. The Ministry of Railways briefed the Senate Committee on upcoming, ongoing, and pending projects and informed the committee members about the hurdles currently being faced by the ministry. The meeting was attended by senators, Nasir Mehmood, Dost Ali Jeesar, Asad Qasim, Saifullah Sarwar Khan Nyazee, Kamil Ali Agha, Dost Muhammad Khan, the mover Senator Shahadat Awan, and the Minister for Railways. The chairman of Railways told the Senate Standing Committee on Railways that during the year 2024–25, a total of 38 projects were underway, with a total cost of Rs260.085 billion. Out of the 38 projects, the ministry successfully completed six, and the remaining 32 have been carried forward to 2025–26. The chairman, while briefing on the Main Line (ML-1) project (Karachi to Rohri),described it as the lifeline of the Reko Diq and Thar Coal projects, which are expected to start this year, depending on the provision of funds. He added that the total estimated cost of ML-1 isRs2,298.18 billion, and the ministry has submitted a proposal for an allocation of Rs75 billion for the financial year 2025–26 to initiate the project. It was also revealed to the committee that total 12 projects of expansion, track safety, rehabilitation, replacement of tracks, feasibility studies and upgraded security system required proposed allocation Rs11,076 million during the financial year of 2025-26. The committee demanded the details of delayed projects in the upcoming meeting of the Standing Committee. The committee members commended the newly adopted strategy of the ministry to complete the projects partially in different phases. The chairman of the committee emphasised the need to complete projects on time to avoid extended costs and directed the ministry to deliver high-end railway services to the general public. The Minister for Railways said that, as the country is passing through a financial crisis, the provinces may contribute to the new or ongoing railway projects in their respective areas. He stated that the ministry is planning to upgrade railway schools and hospitals across Pakistan. In response to a query regarding railway land, the minister informed the committee that an anti-encroachment campaign has recently been initiated nationwide against land grabbers. It was also briefed to the committee that Pakistan has developed locomotives and coaches capable of running at speeds over 160 km/h, but unfortunately, the country lacks the required tracks to operate such trains. The chairman of the committee directed the ministry to conduct a feasibility study on upgrading of track system to support high-speed trains in Pakistan. Copyright Business Recorder, 2025
The Market Online
27-05-2025
- Business
- The Market Online
This commodity rule no longer applies: Barrick Gold, BHP Group, Globex Mining
The mining industry is undergoing change: ESG criteria are playing an increasingly important role. Megatrends such as the electrification of mobility and industry are changing global demand for commodities. At the same time, security of supply is becoming more critical due to increasing geopolitical tensions. Today, we take a look at three companies – Barrick Gold, BHP Group and Globex Mining (TSX:GMX) – and explain why investors need to rethink their approach to commodity stocks, as old principles no longer apply in today's market. BHP Group and Barrick Gold: High cash flows, but risks remain The commodity industry is diverse. Most readers will associate this sector with the mining of gold, silver, copper, or other raw materials. The two industry giants, BHP Group and Barrick Gold, have been successful in this field. While BHP has achieved a market capitalization of just over EUR 100 billion through the mining of industrial metals around the world, Barrick Gold, with a market capitalization of around EUR 46 billion, is considered the world's best-known gold producer. Both companies have in common that they invest early in promising projects, bring them into production, and then generate revenue through the sale of raw materials. Since raw material projects are a very long-term business (it often takes ten years to develop a mine before it reaches production), BHP Billiton and Barrick Gold have flexibility in planning their operations. In addition, the sale of raw materials provides a steady stream of revenue, making both companies largely independent of external sources of financing**. Both the BHP Group and Barrick Gold pursue shareholder-friendly policies, including occasional share buybacks and stable dividends. This has made the shares attractive to long-term investors – many investors reflexively bet on the big players when it comes to investing in commodities and parking capital in a crisis-proof manner. But are the business models of Barrick Gold and BHP Group really crisis-proof? Is the old credo that large commodity multinationals are good crisis stocks still valid today? Giga-projects in unstable regions – Is that really safe? The fact that large mining companies generate steady cash flows and are broadly diversified in various ways are likely the most important arguments in favor of stocks such as BHP or Barrick Gold. However, regional focus also presents a risk. Both BHP Group and Barrick Gold are increasingly active in emerging regions that are sometimes politically or administratively unstable. Examples include production sites in Africa, Asia, and South America. These regions are often home to massive projects, such as Barrick's Reko Diq copper project in Pakistan or BHP's investments in Botswana and Chile. Such projects require significant initial investments and play a decisive role in the strategic planning of the mining giants. However, if production losses occur, profit warnings are not far behind – bringing with it all the associated risks for investors. Globex Mining is developing more than 250 projects in North America with partners Globex Mining (TSX:GMX) offers another option for investing in commodities in a broadly diversified manner other than through shares in large mining companies. The Canadian company operates as a kind of holding or royalty company and secures promising mining projects at an early stage. Its portfolio currently includes more than 250 commodity projects. All properties are located in North America. Globex thus has a regional focus and concentrates on a region with maximum legal certainty and stability. The projects offer almost all elements, from gold and silver to copper, nickel, zinc, rare earths, manganese, and lithium. After acquiring a property, Globex conducts minimal exploration work if necessary and then searches for suitable partner companies. These partners can then further develop the properties at their own expense and, in return, grant Globex Mining licensing fees, known as royalties. One-time payments or profit sharing are also possible contract details. In this way, Globex Mining reduces its own risk and generates a steady income. License payments as an important pillar of financing During last year's PDAC mining conference, Globex CEO Jack Stoch explained that this approach had already succeeded in multiplying an investment of CAD 2 million, ultimately generating CAD 15 million. Although Globex Mining does not have the cash flows of BHP Group or Barrick Gold to pay for exploration programs out of pocket, the large number of projects and regular license payments provide greater financial flexibility than small exploration companies, which often only really push ahead with one flagship project. According to BloombergNEF, around USD 2.1 trillion in new mining investments will be needed by 2050 to avoid already foreseeable supply shortages and meet the raw materials demands of a climate-neutral world. If these investments are not made, raw material shortages could delay the energy transition and drive up costs – including those related to the consequences of climate change. While mining giants commit early to massive projects and develop them with high capital expenditures, Globex takes a different approach: projects are only advanced in collaboration with partners. This reduces risk and enables unparalleled project diversification. Globex's focus on North America also largely eliminates country-specific risk. Is Globex Mining better suited to the spirit of the times? Globex Mining's share price rose by almost 30% to USD 1.00 over a six-month period. BHP and Barrick Gold fell by 10.2% and 0.3%, respectively, over the same period. In light of this development, commodity investors should also consider investments off the beaten track. Globex Mining is worth considering due to its innovative and low-risk business model coupled with its low market capitalization of only around EUR 50 million. In a world where long-term planning is increasingly becoming obsolete, Globex Mining offers a reliable business model. The stock is, therefore, in tune with the spirit of the times. 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Arab News
23-05-2025
- Business
- Arab News
Pakistan to offer US firms concessions on mining investment in tariff talks, says minister
ISLAMABAD: Pakistan plans to offer concessions to US companies to invest in its mining sector as part of negotiations with Washington over tariffs, its commerce minister told Reuters, as Islamabad seeks to capitalize on the Trump administration's interest in boosting trade with South Asia. Pakistan faces a potential 29 percent tariff on exports to the United States due to a $3 billion trade surplus with the world's biggest economy, under tariffs announced by Washington last month on countries around the world. Tariffs were subsequently suspended for 90 days so negotiations could take place. Pakistan's Commerce Minister Jam Kamal said that Islamabad will offer US businesses opportunities to invest in mining projects primarily in Pakistan's Balochistan province through joint ventures with local companies, providing concessions like lease grants. The minister said that would be in addition to efforts to increase imports from the United States, particularly cotton and edible oils, which are currently in short supply in Pakistan. Pakistan would put its offer of concessions for mining investment to US officials during talks over tariffs in the coming weeks. Kamal did not give further information on the bidding process of these mines or other details. 'There is untapped potential for US companies in Pakistan, from mining machinery to hydrocarbon ventures,' he said in an interview with Reuters conducted on Thursday. Pakistan's Reko Diq copper and gold mining project in Balochistan seeks up to $2 billion in financing, including $500 million to $1 billion from the US Export-Import Bank, with term sheets expected by early in the third quarter of this year, its project director told Reuters last month. The mine could generate $70 billion in free cash flow and $90 billion in operating cash flow over its lifespan. US President Donald Trump has said that he's working on 'big deals' with both India and Pakistan, following Washington's key role in brokering a ceasefire between Pakistan and India earlier this month following the worst fighting in decades between the nuclear-armed neighbors. 'The previous US administration focused more on India, but Pakistan is now being recognized as a serious trade partner,' Kamal said. Pakistan will gradually lower tariffs in its upcoming federal budget, Kamal said. He said that the United States has not specified trade barriers or priority sectors. The US Embassy in Islamabad did not immediately respond to a request for comment.
