Weir secures £53m contract for Reko Diq copper-gold project in Pakistan

The Weir Group PLC has been awarded a significant £53 million contract to supply advanced, energy-efficient solutions for the Reko Diq copper-gold project in Pakistan’s Balochistan Province. This greenfield project is a joint venture where Barrick Gold Corporation holds a 50% stake. Located in the Chagai district, Reko Diq is a pivotal project in the global mining sector, with first production anticipated in 2028 and a projected mine life extending over 40 years.

Reko Diq Project Overview

The Reko Diq project is situated in Balochistan, Pakistan’s largest province by area, known for its rich mineral resources. The project is located in a region with challenging conditions, including high temperatures and limited water resources. The Reko Diq area has been identified as one of the world’s largest undeveloped copper-gold deposits, offering substantial potential for significant mineral production.

Development and Ownership: The Reko Diq project is managed by the Reko Diq Mining Company, a joint venture between Barrick Gold Corporation and a consortium of Pakistani entities. Barrick Gold, a leading global mining company headquartered in Canada, brings extensive experience and resources to the project. The project’s strategic importance is underscored by its potential to significantly boost Pakistan’s mining sector and contribute to the country’s economic development.

Technical and Environmental Challenges: The project is being developed in a region with a semi-arid climate, which presents challenges for water usage and environmental management. To address these challenges, the project incorporates advanced technology and innovative solutions to ensure sustainable mining practices. This includes the use of energy-efficient equipment and processes designed to minimize environmental impact.

Weir’s Role and Equipment

In the first phase of the project, Weir will provide a suite of essential equipment and solutions. This includes:

• ENDURON HPGRs: High-pressure grinding rolls that offer superior energy efficiency and reduced operational costs.
• ENDURON Elite Vibrating Screens: Designed for high-performance screening of ores and minerals.
• WARMAN Slurry Pumps: Engineered for handling abrasive and corrosive slurries in mineral processing.
• CAVEX Hydrocyclones: Used for efficient separation of fine particles from slurries.

Weir’s equipment, including large-format HPGRs, is specifically chosen for its ability to operate effectively in the water-scarce environment of the Reko Diq project.

Financial and Strategic Impact

The £53 million contract will be recognized in phases, aligning with manufacturing timelines and project milestones. Of the total, £26 million will be booked immediately, with the remainder scheduled for recognition in late 2024 and early 2025. The contract does not affect Weir’s financial guidance for the year, as announced in July 2024.

Strategic Importance: The Reko Diq project represents a significant opportunity for both Weir and Barrick Gold. For Weir, it is a chance to showcase its advanced technology and commitment to sustainable mining solutions. For Barrick, the project aligns with its strategic goal of expanding its copper and gold portfolio, thereby enhancing its global position in the mining sector.

Executive Comments

Jon Stanton, CEO of Weir, highlighted the significance of the contract: “We are delighted to have secured this significant contract which represents further industry acceptance of Weir’s differentiated sustainable and cost-effective redefined flowsheet solution. Our market-leading HPGR technology is particularly suited for the water-scarce climate and geology of the Reko Diq copper-gold project. Our engineers have designed an innovative solution that comprehensively addresses the particular challenges of this project and is a great example of working in close partnership with an ambitious customer who shares in our purpose to sustainably and efficiently deliver the natural resources essential to create a better future for our world.”

Mark Bristow, President and CEO of Barrick Gold Corporation, commented: “Barrick is pleased to be partnering with Weir in delivering sustainable mining and processing in the new mining frontier of Balochistan. The Reko Diq project will grow Barrick’s strategically significant copper and gold portfolios, benefiting all its Pakistan and Balochistan stakeholders.”

The Reko Diq copper-gold project is poised to be a major player in the global mining landscape. With Weir’s advanced solutions and Barrick Gold’s strategic investment, the project is set to enhance Pakistan’s mining sector and contribute to the global supply of essential minerals. The collaboration reflects a shared commitment to sustainable and innovative mining practices, ensuring the long-term success and environmental stewardship of the project.