Barrick Gold's CEO denies acting as intermediary for the Reko Diq project between Pakistan and Saudi Arabia.
The Reko Diq copper-gold project, located in Pakistan, is gearing up for active construction, marking a significant step towards regional economic development. This ambitious venture, a joint endeavour equally owned by Barrick Gold and the Pakistani federal and Balochistan provincial governments, is set to begin full construction in 2025, with initial production targeted for 2028 [1][3][4][5].
As the project transitions from planning and financing, Barrick Gold, led by CEO Mark Bristow, is actively securing international financing, aiming for $2–3.5 billion from global lenders including major development finance institutions [3]. Notable potential investors include the World Bank’s IFC, U.S. Export-Import Bank, DFC, ADB, and others from Germany, Canada, and Japan [3][4].
The Reko Diq project is a generational opportunity for Pakistan’s economic development, with the potential to generate tens of billions in revenue and create thousands of jobs, significantly contributing to the development of Balochistan [2]. The mine's annual processing capacity is expected to reach 90 million tonnes [1][5].
Key details about the project's ownership and structure reveal that Barrick Gold holds 50% ownership, while the remaining 50% belongs to Pakistan’s federal and Balochistan provincial governments. Both parties plan sizable capital contributions ($1.5–1.8 billion each), supplemented by external financing [3].
Despite complex geopolitical and economic challenges, the project remains on track, with on-site construction ramping up as part of the early work phase [5]. It is important to note that Barrick Gold's CEO Mark Bristow has clarified that Barrick is not acting as a facilitator between Pakistan and Saudi Arabia for the Reko Diq copper-gold project [6].
Meanwhile, the West African nation's military government temporarily took over the Loulo-Gounkoto gold mine complex from Barrick, resulting in a pretax loss of $1.03 billion for the company [7]. Regarding potential tariffs on gold bars, Bristow stated that the impact on mining companies would be minimal, as they are "price takers" [8].
Interestingly, the Pakistani government and Saudi Arabia's sovereign wealth fund PIF are currently in discussions to invest in the Reko Diq copper-gold project [9]. It is worth mentioning that Barrick Gold considers Reko Diq as one of its mines, having completed a feasibility study in 2024, which revealed a 15 million tonne copper reserve and 26 million ounces of gold [10].
In the second quarter of this year, Barrick Gold reported a profit that exceeded analysts' expectations, with a surge in gold prices helping to offset a drop in production [11]. The Reko Diq project, once operational, is poised to be a major catalyst for regional economic growth and infrastructure development [1][3][5].
- To secure the funding needed for the Reko Diq project, Barrick Gold is engaging with various international finance institutions, like the World Bank's IFC, US Export-Import Bank, DFC, ADB, and others from Germany, Canada, and Japan, aiming for $2–3.5 billion [3].
- The Reko Diq project in Pakistan, jointly owned by Barrick Gold and the country's federal and Balochistan provincial governments, is on track for construction, with a significant capital contribution from both parties ($1.5–1.8 billion each) and external financing [3].
- In addition to potential investments from global lenders and regional governments, the Pakistani government and Saudi Arabia's sovereign wealth fund PIF are in discussions to invest in the Reko Diq copper-gold project [9], further demonstrating the wealth generated by this ambitious venture in the finance and mining industry.
