Capital Limited wins mining services contract at Reko Diq copper-gold project

Capital Limited has taken a major step forward in its global growth strategy with the signing of a multi-year mining services contract at the Reko Diq copper-gold project in Pakistan. This agreement with Reko Diq Mining Pakistan Limited—operated by Canadian mining giant Barrick—significantly strengthens Capital Limited’s foothold in one of the world’s most anticipated and strategically important resource developments.

With a projected value of over $60 million per year once fully operational, the contract is designed to run until December 2028, with a built-in option for a five-year extension. It is expected to support Capital Limited’s ongoing efforts to secure long-term contracts tied to high-grade, long-life assets and further establishes its ability to provide diversified services at globally competitive operations.

The deal also represents a strategic reuse of mining equipment and labour from Capital Limited’s previous projects, highlighting the company’s operational agility and capital efficiency—two core pillars of its business model.

What are the core components of the mining services contract at Reko Diq?

The new mining services contract awarded to Capital Limited includes two primary scopes of work—early works civils and tailings storage facility (TSF) mining services. The early works civils component focuses on critical site preparation and infrastructure development during the pre-production phase. This involves construction activities that lay the foundation for operational readiness, an essential phase in large-scale mining projects where timelines, environmental standards, and logistical coordination are paramount.

Capital Limited will redeploy a fleet of mining equipment from the Belinga project to accelerate mobilisation at Reko Diq, with machinery already on-site and commissioning underway. This early-phase deployment is on track for full operational ramp-up by the fourth quarter of 2025. Simultaneously, the company is nearing completion of workforce onboarding and has already initiated operational training to meet tight deployment schedules.

The second component of the contract focuses on TSF mining services, which involve both the construction and ongoing maintenance of the mine’s tailings infrastructure. This part of the project is equally critical, as it supports sustainable waste management and regulatory compliance. Here, Capital Limited will leverage its equipment from the Sukari project, ensuring cost efficiency and rapid scaling. Operational activity under this scope is also scheduled to begin in Q4 2025, reaching full utilisation in the second half of 2026.

How does this contract expand Capital Limited’s role in the Reko Diq project?

While this mining services contract marks a substantial expansion, it is not Capital Limited’s first involvement with the Reko Diq project. Since 2023, the company has been providing reverse circulation and diamond drilling geotechnical services at the site. These early-stage exploration and geological assessment efforts laid the groundwork for what is now becoming a major production-scale development.

The company’s broader history in Pakistan also supports its deepening engagement. Capital Limited has been active in the country’s mining sector since 2008, building relationships and technical expertise within the region’s regulatory and logistical framework. This experience gives it a competitive advantage when scaling up operations in partnership with international operators such as Barrick.

According to Executive Chair Jamie Boyton, the new contract aligns closely with Capital Limited’s strategy to secure multi-service, long-term contracts at tier-one mining assets. He also noted the efficient redeployment of equipment from previously completed contracts as a strong return on prior capital investment.

What makes the Reko Diq project globally significant in the copper-gold mining sector?

The Reko Diq project is poised to become one of the world’s most important copper and gold mining operations. It is jointly owned by Barrick (50 percent), three federal state-owned enterprises of Pakistan (25 percent), and the Government of Balochistan (25 percent). This ownership structure reflects a unique public-private partnership model aimed at fostering foreign investment while ensuring local participation in resource development.

Located in Pakistan’s mineral-rich Balochistan province, Reko Diq has long been viewed as a critical untapped resource. Following years of legal and regulatory challenges, the project was revived in 2022 after Barrick secured operational control. Since then, Reko Diq has become a central pillar of Pakistan’s broader economic and industrial strategy.

According to Barrick’s feasibility study, the Reko Diq project is expected to rank among the world’s top ten copper-producing mines by volume once fully ramped up. With a projected C1 cash cost of just US$0.53 per pound of copper, it will also be one of the most cost-effective operations globally. The estimated life of mine stands at approximately 37 years, with ongoing exploration indicating the potential for further resource extensions.

In this context, Capital Limited’s early and expanding presence on site—across drilling, civil works, and TSF services—positions the company as a key enabler of the mine’s long-term success.

How has Capital Limited’s stock responded to the contract and what are analysts saying?

Capital Limited, listed on the London Stock Exchange under the ticker CAPD, has experienced positive sentiment following the announcement of its mining services contract at Reko Diq. In early April 2025, the stock traded between £0.92 and £0.98 per share, reflecting a 7 percent gain year-to-date. The contract is viewed by analysts as a transformative development that adds strong forward visibility to revenues and improves overall asset utilisation.

Equity research desks have responded with a mix of “Buy” and “Outperform” ratings, highlighting the agreement’s long-term earnings potential, especially as copper prices remain elevated due to global electrification trends. Analysts also point to the company’s operational flexibility, noting the cost-effective redeployment of mining fleets from Belinga and Sukari to Reko Diq as a key driver of margin stability.

Capital Limited’s current valuation, trading at a forward EV/EBITDA ratio below 5x, is considered attractive by some in the investment community, particularly when weighed against its growing project pipeline and embedded services at tier-one mines.

For investors, the combination of recurring contract revenue, strategic commodity exposure, and strong project execution suggests a “Buy” position may be justified, especially in the context of long-term commodity demand and constrained global copper supply.

What does this mean for the future of Capital Limited and Pakistan’s mining sector?

Capital Limited’s entry into the construction and infrastructure phase at Reko Diq signifies more than just a contract win—it reflects the company’s broader transformation into a diversified mining services provider with a footprint across several high-impact markets. By aligning with a flagship project operated by Barrick, the company is enhancing its global visibility while contributing to one of the most ambitious resource developments in South Asia.

The Reko Diq project itself is symbolic of Pakistan’s evolving mining landscape. With significant foreign investment, technical expertise, and regulatory support now in place, the country is gradually positioning itself as a player in the global copper and gold supply chain. Capital Limited’s deepening role at the site suggests continued opportunities not only for direct contract expansion but also for regional diversification into other mining-related infrastructure and exploration services.

As the project moves closer to full-scale production, Capital Limited’s presence across early works civils, TSF mining services, and reverse circulation and diamond drilling will likely remain essential—making it a partner of record in one of the mining industry’s most closely watched developments.