Barrick Delays Reko Diq Development Amid Security Concerns
Event summary
- Barrick will slow development of the Reko Diq project until mid-2027 due to escalating security risks in Pakistan.
- Phase 1 capital costs could rise above the previously estimated $5.6B–$6.0B, with Phase 2 costs potentially exceeding $3.3B–$3.6B.
- First production, initially targeted for late 2028, may be delayed further.
- Barrick will maintain reduced capital spending while keeping the project under active management.
The big picture
Barrick’s decision to pause Reko Diq reflects broader challenges in large-scale mining projects in politically unstable regions. The delay underscores the tension between long-term resource potential and immediate operational risks, particularly as geopolitical instability disrupts supply chains and increases capital costs. The project’s future hinges on Barrick’s ability to navigate security and financing hurdles while maintaining stakeholder confidence.
What we're watching
- Security Landscape
- How evolving security conditions in Pakistan and the region will impact project viability and timelines.
- Capital Requirements
- Whether rising costs and financing challenges will force further delays or structural changes to the project.
- Community Relations
- The pace at which Barrick can balance development slowdowns with maintaining local social programs.
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