Barrick further delays Reko Diq project in Balochistan due to security issues

Barrick Mining has announced a slowdown in development activities at its Reko Diq copper-gold project in Balochistan. The company cited increasing security concerns within Pakistan and the broader Middle East as primary reasons for the decision. This development pause reflects the ongoing challenges faced by the project amid regional instability and security threats.

The company revealed that an ongoing review of the project, which initially began in February, will now be extended by an additional 12 months starting from July. This review period is intended to assess the security situation and its impact on the project’s progress. As a result, the original timelines and budget estimates previously set for Reko Diq are expected to be revised accordingly.

Despite the slowdown in development activities, Barrick emphasized that the project would remain under active management. The company maintained its long-term outlook on Reko Diq, reaffirming its belief in the potential value of the deposit. Barrick’s leadership indicated that the project remains a strategic asset despite current delays.

Located in the remote Chagai district of Balochistan, near the borders of Afghanistan and Iran, Reko Diq is recognized as one of the world’s largest undeveloped copper and gold deposits. Barrick has been involved with the project for over a decade, and in recent years, there has been renewed focus on advancing its development as part of the company’s broader effort to expand its copper portfolio.

The decision to slow development comes amid a rise in insurgent activity in Balochistan. Local nationalist groups have long opposed resource extraction projects, with some demanding a larger share of mineral revenues and others calling for complete independence for Balochistan. These ongoing security issues have significantly impacted the feasibility and timeline of resource projects in the region.

Market analysts have expressed cautious views regarding the development. Josh Wolfson of RBC Capital Markets described the project as “highly out of favour” among investors due to its geopolitical risks. He suggested that these delays could be indicative of potential strategic shifts, including a possible divestment if security concerns persist. Following the announcement, Barrick’s shares declined by as much as 3.2 percent in New York trading, reflecting investor apprehension about the project’s future prospects