The feasibility study for the massive Reko Diq mining project has been successfully completed, revealing the extraction of 13.1 million metric tonnes of copper and 17.9 million ounces of gold.
According to critical information submitted by Oil & Gas Development Company Limited (OGDCL) to the Pakistan Stock Exchange (PSX), Reko Diq’s operator, Barrick Gold, has finalised the technical feasibility report.
Mining to span 37 years, $5.6b investment in first phase
The report outlines that Reko Diq’s mining operations will span over 37 years and will be executed in two phases. The first phase alone will require an investment of $5.6 billion.
The Reko Diq site is projected to produce 13.1 million metric tonnes of copper and 17.9 million ounces of gold, making it one of the most valuable mining projects in Pakistan’s history.
Saudi Arabia’s offer for 15% stake in Reko Diq
In September last year, 24NewsHD TV reported that Saudi Arabia had expressed interest in acquiring a 15% stake in the Reko Diq mining project.
The Kingdom also offered grants for developing road infrastructure around the project.
The Special Investment Facilitation Council (SIFC) had approved the framework of Saudi Arabia’s offer. However, the final decision was left to the Cabinet Committee on Intergovernmental Transactions.
Pakistan expects up to $5 billion in Saudi investments in the mining and agriculture sectors by June next year.
Balochistan gets first $3m from Barrick Gold
The channel also reported that in January 2023, Barrick Gold Corporation had paid the first $3 million to the Balochistan provincial government as part of the new Reko Diq agreement. In a press release, Barrick shared that after the completion of the legal process last month, the Balochistan government and the company agreed on a timetable for the disbursement of the committed funds to the province.
Reko Diq Pakistan Country Manager Ali E Rind handed over the $3 million cheque to Secretary Mines and Minerals Development Department Balochistan, Saidal Khan Luni, the press release read.
Barrick said that the new Reko Diq agreement ensures that benefits from the project start accruing to the people of Balochistan well before the mine goes into production through advanced royalties and social development funds.
It added that the project, during peak construction, is expected to employ approximately 7,500 people and will create around 4,000 long-term jobs once in production. The company plans to finish the Reko Diq feasibility study update by the end of 2024, with 2028 targeted for the first production, the press release stated.
PM orders foolproof security for Reko Diq project
Prime Minister Shehbaz Sharif also directed that security should be ensured for those working on the Reko Diq mining project and for the logistics and transport from Reko Diq to the Gwadar seaport.
The PM was chairing an important meeting regarding the Reko Diq mining project last year on March 25. A delegation of Barrick Gold Company, led by its Chief Executive Officer, Mark Bristow, took part in the meeting through a video link.
Reporter: Ashraf Khan