Latest news with #RekoDiqProject
Business Recorder
29-07-2025
- Business
- Business Recorder
USA's Fluor gets final go-ahead for Reko Diq project in Pakistan
Fluor Corporation, an American engineering and construction firm, has received final notice to proceed from Barrick Mining Corporation on its Reko Diq Project in Balochistan, Pakistan. The company, headquartered in Texas, was selected as Barrick's lead engineering, procurement and construction management (EPCM) partner in April 2025 and recognised its portion of the undisclosed contract in the second quarter, Fluor said in a statement on Tuesday. 'Fluor and Barrick share a strong commitment to delivering large-scale mining projects safely, responsibly and efficiently,' said Harish Jammula, President of Fluor's Mining & Metals business. 'Reko Diq will be a major contributor to Pakistan's economy, which is expected to have a transformative impact on Balochistan province. The mine will create jobs, stimulate regional economic growth and support long-term investment in development programs.' 'Fluor's selection as our EPCM partner strengthens our ability to execute the Reko Diq project with the technical rigor, operational discipline and socio-environmental responsibility that are hallmarks of both companies,' said Mark Bristow, President and CEO of Barrick. 'We look forward to working closely with Fluor to ensure that Reko Diq delivers lasting value to the equity partners, both local and international, as well as the many in-country stakeholders, including the people of Balochistan and Pakistan.' Japan's Komatsu to establish $100mn maintenance facility in Karachi: report Barrick Gold owns a 50% stake in the Reko Diq mine and the governments of Pakistan and the province of Balochistan own the other 50%. The mines are considered one of the world's largest underdeveloped copper-gold areas, and their development is expected to have a significant impact on Pakistan's economy. According to Fluor, Reko Diq is a generational project that is expected to have a life that will extend well beyond 40 years as a truck-and-shovel open pit operation with processing facilities producing a high-quality copper-gold concentrate. The project will comprise multiple open pit mines and associated infrastructure, concentrate process facilities and a transportation network for moving goods, consumables and concentrate between the site and port. Construction will begin later this year and will be built in two phases. First production is targeted for 2028. When fully operational, the site will be capable of a total throughput of 90 million tonnes per annum.
Business Wire
28-07-2025
- Business
- Business Wire
Fluor Receives Final Notice to Proceed from Barrick on Reko Diq Copper Project in Pakistan
IRVING, Texas--(BUSINESS WIRE)--Fluor Corporation (NYSE: FLR) announced today that it has received final notice to proceed from Barrick Mining Corporation on its Reko Diq Project in Balochistan, Pakistan. Fluor was selected as Barrick's lead engineering, procurement and construction management (EPCM) partner in April 2025 and recognized its portion of the undisclosed contract in the second quarter. Fluor has received final notice to proceed from Barrick Mining Corporation on its Reko Diq Project in Balochistan, Pakistan. Share 'Fluor and Barrick share a strong commitment to delivering large-scale mining projects safely, responsibly and efficiently,' said Harish Jammula, President of Fluor's Mining & Metals business. 'Reko Diq will be a major contributor to Pakistan's economy, which is expected to have a transformative impact on Balochistan province. The mine will create jobs, stimulate regional economic growth and support long-term investment in development programs.' 'Fluor's selection as our EPCM partner strengthens our ability to execute the Reko Diq project with the technical rigor, operational discipline and socio-environmental responsibility that are hallmarks of both companies,' said Mark Bristow, President and CEO of Barrick. 'We look forward to working closely with Fluor to ensure that Reko Diq delivers lasting value to the equity partners, both local and international, as well as the many in-country stakeholders, including the people of Balochistan and Pakistan.' Reko Diq is a generational project that is expected to have a life that will extend well beyond 40 years as a truck-and-shovel open pit operation with processing facilities producing a high-quality copper-gold concentrate. The project will comprise multiple open pit mines and associated infrastructure, concentrate process facilities and transportation network for moving goods, consumables and concentrate between the site and port. Construction will begin later this year and will be built in two phases. First production is targeted for 2028. When fully operational, the site will be capable of a total throughput of 90 million tonnes per annum. Fluor brings extensive global experience in delivering large copper concentrate projects in some of the world's most challenging locations, including high-altitude, remote and logistically complex environments. About Fluor Corporation Fluor Corporation (NYSE: FLR) is building a better world by applying world-class expertise to solve its clients' greatest challenges. Fluor's nearly 27,000 employees provide professional and technical solutions that deliver safe, well-executed, capital-efficient projects to clients around the world. Fluor had revenue of $16.3 billion in 2024 and is ranked 257 among the Fortune 500 companies. With headquarters in Irving, Texas, Fluor has provided engineering, procurement, construction and maintenance services for more than a century. For more information, please visit or follow Fluor on Facebook, Instagram, LinkedIn, X and YouTube. #m&m
India.com
13-06-2025
- Business
- India.com
Pakistan hits JACKPOT, gets Rs 600000000000 loan for 'Reko Diq' project from...; its related to...
Representational Image/AI-generated.. Reko Diq Project: In a major boost for Pakistan, the cash-strapped nation has secured a concessional loan of $700 million (about Rs 6000 crore) from World Bank and the International Finance Corporation (IFC), for the 'Reko Diq' project–its ambitious mining and resource development project in the mineral-rich Balochistan region. Additionally, Pakistan also expects an investment of $2.5 billion from private players for the Reko Diq, one of Pakistan's largest mining initiatives, which could provide a major boost to the country's crumbling economy. What is Pakistan's Reko Diq Project? The Reko Diq project refers to one of world's largest untapped copper and gold deposits in the remote Chagai mountains in Pakistan's Balochistan province. The region is believed to vast reserves of gold and copper. The Reko Diq mine is owned Canadian firm Barrick Gold and other stakeholders, including Pakistan's federal government, and the rovincial government of Balochistan. The first phase of the Reko Diq project is expected to begin production in 2028, with an annual target of 240,000 tonnes of copper and 300,000 ounces of gold, Production is expected to increase to 400,000 tonnes of copper and 500,000 ounces of gold per year in the second phase. According to a recent study, the Reko Diq mine contains 15 million tonnes of copper, and 26 million ounces of gold reserves, and has the potential to become one of the world's lowest-cost copper producing mines. As per details, the total cost of the Reko Diq project is estimated at $6.6 billion, including $5.6 billion for the first phase, and remaining for subsequent phases. Negotiations are also underway with several international lenders fund the first phase of the project, according to reports. How Reko Diq project could boost Pakistan economy? A recent feasibility report has increased the production capacity of the project to 45 million tonnes per annum from the earlier 40 million in Phase 1, and from 80 million tonnes to 90 million tonnes in Phase 2. While the mine's life has reduced from 42 years to 37 years due to increased production rates, stakeholders believe that undiscovered mineral reserves could extend the project's life to up to 80 years. Meanwhile, experts believe that the $700 million loan received from the World Bank and IFC is crucial for the Reko Diq project, as it is expected to attract additional investments of $2.5 billion from the private sector. The project could prove to be a game-changer for Pakistan's economy as it is estimated to generate $70 billion in free cash flow and $90 billion in operational cash flow.
Business Recorder
15-05-2025
- Business
- Business Recorder
Minister informs NA: Reko Diq project to generate over $75bn in free cash flows
ISLAMABAD: Federal Minister for Energy (Petroleum Division) Ali Pervaiz Malik said that Reko Diq Project will be the largest Western investment in Pakistan and is forecasted to generate more than $75 billion in free cash flows over the current life of mine plan which is nearly 37 years. In written reply to a question to the National Assembly on Thursday, the minister said that total volume and estimated value of Reko Diq (RD) is; Phase-I production starting 2028: Targeting 300,000 oz/annum of gold and 200,000 tons/annum of copper. He said that Phase-2 production is starting 2034: 500,000 oz/annum of gold and 400,000 tons/annum of copper. He said that these numbers are based on real cash flows, which are conservative. He said the nominal free-cash flows assuming a standard commodity price escalation may yield to more than $100 billion of cash flows. Barrick's Reko Diq project in Pakistan aims new financing The minister said that project structure with 25 per cent share of Balochistan besides taxes and royalty provisions, ensures that a significant share of the economic benefits of the project will flow to Pakistan, with the majority of those amounts paid to the Government of Balochistan. He said the key fiscal terms for the project include (among others) are: - five per cent royalty payable to the Government of Balochistan, one per cent net smelter return payable to the Government of Pakistan. He said that 0.5 per cent export processing zone surcharge. To ensure that Balochistan is receiving benefits during the development and construction phases, the minister said that advance royalty payments to the Government of Balochistan were made by the Project Company in year 1 ($5 million) and year 2 ($7.5 million) and will be made in year 3 and thereafter until commercial production ($10 million per year), for a maximum total amount of advance payments of $50 million. The minister said that according to the bankable Feasibility Report, the key development phases are: Phase-1 construction: 2025 – 2028, Phase-1 Production: 2028, Phase-2 construction: 2028 – 2033, Phase-2 production: 2034 He said that adequate measures and steps have been ensured and taken for environmental safeguards, community development and employment opportunities besides local business opportunities. He said that $5.3 million has been spent in education, health, skills training, and clean water access since 2022. He said that construction phase: one per cent of all construction capital (estimated at approximately $57 million for Phase 1 and $33 million for Phase 2 based on the updated feasibility study); $10 million has already been paid toward this commitment in advance to Government of Balochistan. About the operating phase of the project, the minister said that 0.4 per cent of annual revenue during every fiscal year commercial production estimated at approximately $25 million per year. He said that major local employment: 7,500 jobs during peak construction; 4,000 jobs in the long term. Currently, 77 per cent of RDMC employees are from Balochistan. He said that various steps taken to ensure maximum possible benefit to the people of Balochistan include royalty at five per cent of revenue (net smelter revenue) goes to the Government of Balochistan. He said that an advance royalty arrangement has been made, providing total of $50 million until production commences in 2028, after which regular royalty payments will begin. The minister said that 75 per cent of employees in the project are from Balochistan. 4,000+ long term jobs and 7,500+ people during peak construction will be employed. He said Reko Diq Mining Company (RDMC) is governed by a board chaired by the chief secretary of Balochistan, with the secretary Mines and Minerals as a member, alongside representatives from federal state-owned enterprises (SOEs) and Barrick. The board meets quarterly to oversee project progress and ensure transparency, he said.
Arab News
26-03-2025
- Business
- Arab News
Pakistani energy giants increase investment in Reko Diq copper-gold mine project to $1.25 billion
KARACHI: Pakistani state-owned Oil & Gas Development Company Ltd. (OGDCL) and Pakistan Petroleum Ltd. (PPL) have increased their investments in the Reko Diq gold and copper mining project to $1.25 billion, the energy firms said in separate filings in the Pakistan Stock Exchange (PSX). The OGDCL and PPL, each holding 8.33 percent stake in the multi-billion-dollar project through Pakistan Minerals (Private) Limited, have completed their feasibility studies. The third state-owned shareholder is Government Holdings (Private) Limited, according to the stock filings. Each of the two oil and gas explorers have decided to increase their funding commitment with respect to the project, reflecting their pro rata share of total capital investment, inclusive of project financing costs, to $627 million. The financing cost is to be adjusted according to the actual project cost and inflation. On Tuesday, the Economic Coordination Committee (ECC) of the federal cabinet also approved a summary regarding the Reko Diq project and changes in its overall development plan, the Finance Division said in a statement. 'The ECC took up a summary by the Petroleum Division regarding the Reko Diq Project and changes in its overall development plan and related financial commitments and project finance considerations due to inflation and enhanced scope of the project concerning capacity, energy mix, alternative water supply options and updated processing plants and machinery,' the statement read. 'The ECC noted the factors leading to the project escalations, and approved the proposals contained in the summary with the directions to the Ministries of Petroleum & Finance to continue close coordination with a view to ensuring timely implementation of all agreed actions.' Reko Diq, one of the world's largest underdeveloped copper-gold mine, is jointly owned by Canadian mining firm Barrick Gold Corp. and Pakistan. Out of the total shareholding of Reko Diq project, 25 percent is held by the provincial government of Balochistan — 15 percent on a fully funded basis through Balochistan Mineral Resources Limited and 10 percent on a free carried basis — and 50 percent is held by Barrick Gold Corporation which is the operator of the project. As per the estimates, the increase in copper and gold prices has offset the impact of higher project costs, according to the two energy firms. The feasibility study of the project shows it has a mining life of 37 years and is expected to yield 13.1 million tons of copper and 17.9 million ounces of gold. The project will be executed in two phases, with the phase one having an estimated capital outlay of $5.6 billion that is exclusive of the financing costs and inflation. It is planned to be funded through a limited-recourse project financing facility of up to $3 billion with the remaining funded through shareholder contributions, the OGDCL and PPL said. The energy companies plan to fund the second phase through a mix of revenue generation from the project, additional project financing and shareholder contributions, if required. Under the updated feasibility study phase one is planned to process 45 million tons per annum (Mtpa) of mill feed from 2028. While phase two is planned to double the processing capacity to 90 Mtpa by 2034. The project will leverage five of the currently identified 15 porphyry surface expressions within the current mining lease, highlighting substantial future growth potential. Negotiations for the proposed project financing are ongoing.
