Reko Diq JV greenlights Phase 1, Selects Fluor for copper-gold project development

The Reko Diq copper-gold project, long regarded as one of the largest untapped mineral deposits in the world, has taken a major step forward following shareholder approval of its updated feasibility study and the conditional greenlight for Phase 1 development capital. The decision, announced at the Pakistan Minerals Investment Forum in Islamabad, signifies renewed momentum for this $8.83 billion project located in the mineral-rich province of Balochistan, Pakistan.

Led by Barrick Gold Corporation, which holds a 50% stake in the project, the Reko Diq Joint Venture includes three Pakistani federal state-owned enterprises and the Government of Balochistan, each holding a 25% interest. This public-private collaboration is viewed as a test case for Pakistan’s broader strategy to attract foreign investment into its mining sector. The shareholders’ approval is contingent upon the successful closing of up to $3 billion in limited recourse project financing. If secured, the financing will allow major construction works to proceed in 2025, keeping the ambitious target of first production by the end of 2028 on track.

Who has been selected to lead the Reko Diq copper-gold project construction?

Fluor Corporation, a leading global engineering and construction firm, has been selected as the Engineering, Procurement and Construction Management (EPCM) partner for the Reko Diq project. Fluor will collaborate with the Barrick Owner’s Team to deliver the detailed design and execution of the mine’s infrastructure, reflecting a shared commitment to safety, efficiency, and local economic integration.

Supporting Fluor are notable engineering consultants including Knight Piésold, PRDW, and Vecturis, all of whom played an active role during the feasibility study phase. This selection of experienced global and regional firms underscores the project’s emphasis on integrating international standards while maximizing local participation.

Barrick president and chief executive Mark Bristow emphasised that the milestone was a demonstration of the shared commitment between the company and the governments of Pakistan and Balochistan to develop the world-class asset responsibly and sustainably. According to Bristow, Fluor’s appointment was based on its proven track record in managing complex, large-scale mining projects and its alignment with Barrick’s priorities of local content, environmental stewardship, and community development.

What does the updated feasibility study reveal about Reko Diq’s long-term potential?

The updated feasibility study paints a robust picture of the Reko Diq project’s economic and operational outlook. With an estimated mine life of 37 years, the project will be developed in two major phases. The total capital cost is projected at $8.83 billion on a 100% basis, with Phase 1 expected to cost between $5.6 billion and $6.0 billion, excluding financing charges. Barrick’s share of equity contributions for Phase 1, assuming $3 billion in project financing is raised, is estimated between $1.8 billion and $2.0 billion.

Phase 1 will process 45 million tonnes per annum (Mtpa) of mill feed, expected to yield approximately 240,000 tonnes of copper and 297,000 ounces of gold annually. By 2034, Phase 2 will expand operations to 90Mtpa, effectively doubling output to 460,000 tonnes of copper and 520,000 ounces of gold annually for the following decade.

Mining rates are expected to peak in 2044 at 250Mtpa, with a life-of-mine strip ratio of 1.07. These metrics position Reko Diq as a future cornerstone in the global copper supply chain. Barrick’s assessments suggest that once in full operation, Reko Diq will rank among the world’s ten largest copper producers, with a highly competitive C1 cash cost of $0.53 per pound. These economics could become even more compelling if ongoing exploration efforts identify additional mineralisation that extends the mine’s life beyond current projections.

How are global partners contributing to Reko Diq’s infrastructure and mining services?

In addition to Fluor, a host of global mining and engineering firms have been brought on board. Capital, a mining services provider, recently signed a multi-year agreement with Reko Diq Mining Pakistan, the operating entity managed by Barrick. The contract spans initial development works and is expected to generate annual revenues of over $60 million once operations scale up. Set to run through December 2028, the agreement also includes a five-year extension option, indicating long-term engagement and operational stability.

Equipment and technology suppliers also play a key role in the build-out of Reko Diq’s infrastructure. Metso, Weir, and Komatsu have been selected to supply most of the project’s processing and mining equipment. These companies bring global capabilities in crushing, grinding, and material handling, all essential for efficient, high-throughput mineral processing in a challenging environment like Balochistan.

What is the broader economic and strategic impact of the Reko Diq project for Pakistan?

Reko Diq is more than just a copper and gold mine—it represents a transformational project for Pakistan’s mineral economy. Situated in Balochistan, a province historically underdeveloped yet rich in natural resources, Reko Diq is poised to create jobs, develop regional infrastructure, and drive foreign direct investment.

For the Government of Pakistan and Balochistan, the project is a symbol of improved governance and international credibility following a history of legal disputes that delayed the project for over a decade. After the 2019 arbitration ruling in Barrick’s favour at the World Bank’s International Centre for Settlement of Investment Disputes (ICSID), Pakistan chose to settle and renegotiate terms to resume development. That decision paved the way for a new joint venture model, which aligns public and private interests while distributing risk and rewards.

The project is expected to contribute significantly to Pakistan’s foreign exchange earnings, reduce import dependency for copper, and serve as a model for public-private partnerships in the natural resource sector. Barrick has committed to ensuring that a substantial portion of procurement, employment, and construction activity benefits local communities. The construction phase alone is expected to generate thousands of jobs, with additional indirect employment across supply chains.

How does Reko Diq fit into global copper demand and energy transition trends?

Reko Diq’s timing aligns strategically with a broader global push toward renewable energy and electrification, both of which require substantial copper inputs. From solar panels and wind turbines to electric vehicles and grid infrastructure, copper has become an essential metal in the transition to a low-carbon future. With demand forecast to outpace supply over the next decade, new high-grade copper mines like Reko Diq are critical to closing the gap.

Unlike many copper projects located in politically volatile or environmentally sensitive areas, Reko Diq’s regulatory framework, public-private ownership model, and long mine life make it an attractive long-term supplier. Barrick’s adherence to international standards for environmental, social, and governance (ESG) performance further supports its reputation as a responsible operator in emerging markets.

In the eyes of analysts, Reko Diq’s successful development could help alleviate future global supply constraints while providing Barrick with a diversified production base beyond its traditional North and South American strongholds.

What lies ahead for Reko Diq as it moves toward production?

With early works construction already underway in the first quarter of 2025, and full-scale development anticipated following financial closure, the Reko Diq copper-gold project is entering its most critical phase yet. If milestones are met as scheduled, first production is targeted by the end of 2028. This will mark a new era for Pakistan’s mining industry, establishing it as a credible player in the global base and precious metals markets.

In parallel, Barrick continues to explore five of the fifteen known porphyry surface expressions within the Reko Diq lease area, suggesting the current 37-year mine life could eventually be extended. That future potential, combined with strategic stakeholder alignment and robust engineering partnerships, positions Reko Diq as not only a vital resource project but also a benchmark for cross-border mineral development in emerging economies.