KARACHI – Reko Diq, which is poised to reshape both Pakistan’s mining sector and Barrick’s global copper ambitions, witnessed specualtions after restructuring at Barrick Mining.
The mineral giant reaffirmed its commitment to Pakistan’s Reko Diq copper-gold project, even as speculation swirls about potential shake-up of company’s international assets. Interim CEO Mark Hill, stepping in after the sudden early exit of longtime CEO Mark Bristow, made it clear that Barrick’s dedication to the $7 billion venture remains unchanged.
The leadership change sent shockwaves through mining world. Bristow promised to stay for next three years to oversee development of Reko Diq, the country’s largest and most strategically important mining initiative.
Barrick’s board is weighing a portfolio split, possibly including sale of Reko Diq and its African operations, with some shareholders concerned that high-risk regions like Pakistan and Africa could drag down the company’s valuation compared to its North American assets.
Yet Reko Diq remains jewel in Barrick’s crown. The mine, equally owned by Barrick and Pakistani government, is set to begin production by 2028, already adding 13 million ounces to Barrick’s gold reserves in 2024. Its first phase targets 2lac metric tons of copper annually, with output expected to double after expansion.
For Pakistan, Reko Diq is key to the country’s minerals ambitions. For Barrick, it remains largest long-term investments in its global pipeline. After resolving a protracted legal dispute, Barrick returned to Pakistan in 2022, paving the way for the mine’s revival.
Amid the speculations, Oil and Gas Development Company Limited (OGDC) sought to calm investor nerves, stressing that any internal restructuring at Barrick would not impact project, in light of involvement of multiple stakeholders.
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