Reko Diq mining project is set to make history as the largest Western investment in Pakistan, expected to generate over $75 billion in cash flows during its 37-year lifespan, according to Federal Minister for Petroleum Division Ali Pervaiz Malik.
While briefing the National Assembly, Malik shared the project’s two-phase development plan. Phase one, starting in 2028, will produce 300,000 ounces of gold and 200,000 tons of copper annually. By 2034, phase two will scale up output to 500,000 ounces of gold and 400,000 tons of copper per year. These estimates, deemed conservative, indicate that cash flows could exceed $100 billion if commodity prices rise consistently.
Read more:Reko Diq project nears financial closure with $3bn investment expected
The project, operated by Barrick Gold, offers significant financial benefits for Pakistan, particularly Balochistan province, which owns a 25% stake in the venture. Under the agreement, Balochistan will receive a 5% royalty on project revenue, while the federal government will earn a 1% net smelter return. Advance royalty payments to Balochistan have already commenced, with $5 million paid in the first year, $7.5 million in the second year, and $10 million annually from year three until production begins in 2028.
Beyond financial gains, the project promises long-term social and economic benefits. Since 2022, we have invested $5.3 million in education, healthcare, skills training, and clean water access in local communities. Additionally, the construction phase will create 7,500 jobs, with 4,000 permanent positions once operational. Currently, 77% of the workforce at Reko Diq Mining Company consists of employees from Balochistan.
A board chaired by Balochistan’s chief secretary, along with representatives from the Mines and Minerals Department, federal state enterprises, and Barrick, oversees the governance of the project. The board meets quarterly to ensure progress and maintain transparency.
The team will begin construction in 2025, dedicating 1% of the capital to community development. The project will begin production in 2028, focusing on driving economic growth and creating sustainable jobs in the region.
