Chinese Firms Likely to Join Reko Diq Project as Pakistan Eyes $74 Billion Economic Windfall

ISLAMABAD: Pakistan’s flagship Reko Diq copper and gold project has reached a significant milestone, with authorities considering the inclusion of Chinese companies to help reduce costs, address security challenges, and accelerate development work at one of the world’s largest undeveloped mining projects.

According to informed sources, the matter was discussed during recent meetings between Pakistani officials and Barrick Gold Chairman Mark Bristow. The discussions focused on revising the project’s contractor structure and exploring opportunities for Chinese firms to participate in various aspects of construction, infrastructure development, and mining operations.

Sources said Chinese participation is being considered as a strategic move to lower overall project costs, improve operational efficiency, and expedite implementation. Barrick Gold, which currently operates the project, is reportedly open to moving beyond the traditional Western contractor model and incorporating Chinese partners into key segments of the venture.

Officials in Pakistan’s Petroleum Division said the project’s financial close has experienced delays due to technical and financing-related issues. Despite these challenges, development activities continue, and commercial production remains on track to begin by the end of 2028.

Located in Balochistan’s Chagai district, the Reko Diq copper and gold mine is regarded as one of the most significant investment projects in Pakistan’s history. The latest feasibility study estimates that the project will generate more than $74 billion in free cash flow over its projected 37-year mine life, delivering substantial benefits to Pakistan’s economy, exports, and foreign exchange reserves.

The updated feasibility report places the first-phase development cost at approximately $6.8 billion, representing a 58 percent increase from earlier estimates. The cost escalation has been attributed to global inflation, expanded production capacity, and additional infrastructure requirements.

Barrick Gold holds a 50 percent stake in the project and serves as its operator, while the remaining 50 percent is jointly owned by the Government of Pakistan and the Government of Balochistan. The federal government’s share is held through state-owned entities, including Pakistan Petroleum Limited (PPL), Oil and Gas Development Company Limited (OGDCL), and Government Holdings (Private) Limited (GHPL).

Under the current development plan, the first phase of the project is expected to produce approximately 200,000 tonnes of copper annually. Following the completion of the second phase, annual copper production is projected to increase to nearly 400,000 tonnes, while average annual gold production is expected to reach around 500,000 ounces.

Mining experts estimate that over its 37-year lifespan, Reko Diq could produce approximately 13.1 million tonnes of copper and 17.9 million ounces of gold, positioning Pakistan as a significant player in the global mining sector.

Sources noted that Chinese companies have extensive experience operating in challenging environments and could help mitigate security-related risks while ensuring timely project execution. Government officials believe Chinese involvement could significantly reduce construction costs, shorten completion timelines, and improve overall project efficiency.

International financial institutions have also shown growing confidence in the project. Recently, the International Finance Corporation (IFC) announced an additional $400 million financing package, increasing its total commitment to $700 million. Further funding support from other international lenders is also expected.

Economic analysts describe Reko Diq as a transformational project for Pakistan’s mining industry. Beyond its contribution to exports and foreign exchange earnings, the venture is expected to create thousands of jobs, stimulate infrastructure development in Balochistan, and generate billions of dollars in taxes, royalties, and profit-sharing revenues for both federal and provincial governments