Barrick’s Reko Diq copper project delays: capex and schedule lens for mine planners
Reviewed by Tom Sullivan
First reported on MINING.com
30 Second Briefing
Barrick Mining has warned of “significant increases” to the capital budget and schedule for the 50%-owned Reko Diq copper-gold project in Balochistan, where Phase 1 was previously costed at US$5.6–6.0 billion and Phase 2 at US$3.3–3.6 billion, with first production targeted by end-2028. Citing escalating security risks in Pakistan and the wider region, Barrick will slow field development and extend the technical and financing review to mid‑2027, while keeping the project under “active management” with reduced capital spend. The porphyry deposit, holding an estimated 15 million tonnes of copper reserves and modelled for a 37‑year mine life, remains central to Barrick’s Tier 1 copper strategy and its long-term community commitments in Balochistan.
Technical Brief
- Capital estimates quoted are on a 100% project basis and exclude capitalised financing costs.
- Company guidance warns of “significant increases” to both Phase 1 and Phase 2 capital envelopes.
- Review period extension to mid‑2027 explicitly covers security, capital requirements, project financing, scope and schedule.
- Barrick forecasts over US$70 billion free cash flow and US$90 billion operating cash flow across 37 years.
- Development activity is being slowed but kept under “active management” with a deliberately reduced capital spend profile.
Our Take
The earlier Metso Plus contract for the 50%-owned Reko Diq copper-gold project suggests key process plant packages are already locked in, so any ‘significant’ budget increase is likely to fall more on bulk earthworks, infrastructure and security-related contingencies than on core beneficiation equipment.
Barrick Mining’s concurrent plan to spin off North American gold assets, including Nevada Gold Mines, in favour of a more copper-weighted portfolio indicates Reko Diq’s 15 Mt copper reserve and 37-year mine life remain strategically central even if capex and schedule move out.
In our database of 1218 Mining stories, relatively few greenfield copper projects in higher-risk jurisdictions like Balochistan carry forecast free cash flow of around US$70 billion over life-of-mine, which means Pakistan’s fiscal and security stance around Reko Diq will be closely watched as a bellwether for large-scale copper investment in the wider Middle East region.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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