ISLAMABAD: Security concerns in Pakistan’s southwestern Balochistan province are slowing development of the nearly $9 billion Reko Diq copper-and-gold project, with Canadian mining company Barrick extending its review of the project until mid-2027 and warning that costs and the timeline could rise.
The project, located in Chagai district near the borders with Iran and Afghanistan, is one of the world’s largest undeveloped copper-and-gold deposits. Barrick began reviewing the project in February after an increase in security incidents in Balochistan and has since reduced the pace of development while keeping the project under active management.
The review covers security arrangements, capital requirements, financing, project scope and the development schedule. Barrick said the worsening security situation in Pakistan and the wider region made it necessary to continue the review through mid-2027.
The security concerns come as militant violence has increased in Balochistan. Coordinated attacks in January 2026 killed civilians and security personnel, adding to concerns about construction, transportation, workers and supply routes in the remote region.
Barrick has not announced a new production date. The company had previously targeted first production by the end of 2028, but said the extended review and slower development could affect the project’s previously announced budget and schedule.
Under the previous plan, the first phase was expected to process about 45 million metric tons of ore each year. It was projected to produce about 240,000 metric tons of copper annually, along with gold.
Barrick estimated the first phase would cost between $5.6 billion and $6 billion, while a second phase was expected to require another $3.3 billion to $3.6 billion.
The second phase would increase processing capacity to about 90 million metric tons per year. Once fully developed, the project is expected to become a major source of copper and gold production for Pakistan and Barrick.
Barrick owns 50% of Reko Diq and operates the project. The Balochistan government owns 25%, while the remaining 25% is held by three Pakistani state-owned companies.
For Pakistan, the project is closely linked to hopes of increasing mineral exports, government revenues and foreign investment. Earlier plans also projected thousands of jobs during construction and long-term employment once the mine becomes operational.
Pakistan and Barrick have also been reviewing security arrangements for the project. In June, Pakistani officials said the partners were discussing possible security upgrades and related procurement needs as security costs came under review.
Barrick has said it continues to see long-term value in Reko Diq but wants to assess the security environment before committing to the project’s full development pace. The company said the mine will remain under active management while the review continues.
