Ground View Pakistan and Reko Diq: security, logistics and capex lens for engineers
Reviewed by Tom Sullivan

First reported on MINING.com
30 Second Briefing
Barrick’s Reko Diq copper-gold project in Pakistan, planned for 37 years of operation with Phase 1 capex of US$5.6–6 billion and roughly 200,000 tonnes of copper per year, has been slowed with a review extended to mid-2027 amid escalating regional security and warnings of “significant” cost and schedule increases. Closure of the Strait of Hormuz has pushed Brent above US$100/bbl, disrupted sulphur and sulphuric acid flows that underpin copper and battery-metal processing, and diverted cargo to Pakistan’s Arabian Sea ports, including Gwadar. With a 1,326 km rail haul planned from Chagai to Port Qasim and Balochistan holding 25% of Reko Diq, Islamabad’s new diplomatic leverage between Washington and Tehran now collides with harder questions on security, logistics and institutional delivery.
Technical Brief
- Barrick’s February Q4 release first flagged a security-driven “review of all aspects of the project” before the later slowdown.
- US and Israeli strikes on Iran occurred 10 days after that release, with Iran’s border directly abutting Chagai district hosting Reko Diq.
- The US Export-Import Bank has approved US$1.25 billion in financing, sharpening Pakistan’s focus on delay costs.
- Government of Balochistan’s 25% equity stake turns project slippage into a provincial political flashpoint over resource sharing.
- About 50% of global seaborne sulphur trade transits Hormuz, so closure directly constrains sulphuric acid availability for copper circuits.
- China’s sulphuric acid export curbs since May have made acid the single largest operating cost at some mines.
- Gwadar and other Balochistan deep-water ports have begun taking cargo diverted from Hormuz routes, stress-testing port and hinterland logistics.
- Reko Diq concentrate is planned to move 1,326 km by rail from Chagai to Port Qasim, making corridor security and rail reliability central design risks.
- Islamabad’s role hosting US–Iran talks and the “Islamabad Memorandum” yields diplomatic leverage, but without corresponding on-ground security gains for mine development.
Our Take
The US Export‑Import Bank’s US$1.25 billion approval for Reko Diq stands out in our database as one of the few explicitly tagged US‑backed financings for critical minerals in Asia, signalling that Pakistan’s copper and associated sulphur/sulphuric acid streams are being treated as part of a strategic supply chain rather than a purely commercial play.
A 37‑year mine life with first production only targeted for 2028 means Balochistan’s 25% stake in Reko Diq is effectively a multi‑generation fiscal anchor; in other long‑life copper entries in our coverage, that kind of state equity has tended to translate into stronger bargaining power over infrastructure and processing localisation once cash flow begins.
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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