Barrick Mining (NYSE:B) (TSX:ABX) said Thursday it expects there may be “significant increases” to its previously disclosed total estimated capital budget and timeline for the Reko Diq copper project in Pakistan.
On March 26, Barrick She will slow down her development from the Reko Diq deposit and extending the project review period, due to security concerns in the Middle East.
Rico Deck, one of the world’s largest untapped deposits of the mineral, is located in the remote, insurgency-hit western province of Balochistan, and is an equal partnership between the company and the Pakistani authorities.
The previously disclosed total estimated capital cost for Phase 1 was between $5.6 billion and $6.0 billion (100% basis, excluding capitalization of financing costs) and for Phase 2 between $3.3 billion and $3.6 billion (100% basis, excluding capitalization of financing costs), with first production targeted by the end of 2028.
“Barrick continues to believe in the long-term value of Rico Deck. Following the initial findings of the review and the increasing escalation of security issues in Pakistan and the region, the company believes it is necessary to slow development activity and continue reviewing the project until mid-2027,” the Canadian miner said. He said in a statement Released immediately after market close in Toronto.
Barrick has viewed Reko Diq – which has an estimated 15 million tonnes of copper reserves – as a linchpin of its strategy to become a tier 1 producer of the metal.
She added that the ongoing review will allow the company to comprehensively evaluate the evolving security situation, capital requirements, project financing, project scope and timeline.
“While development activity will slow, the project will remain under active management with reduced capital expenditure,” Parikh said. “The development of the first phase of the Reko Diq project has been approved on this basis. Barrick recognizes its important role in the local community and intends to continue to invest in and honor its existing community and social programmes.”
Barrick, which has been developing the project in partnership with the governments of Pakistan and Balochistan for years, had initially planned to start operating the project in 2028. Subject to financing.
Once operational, the mine is expected to generate more than $70 billion in free cash flow and $90 billion in operating cash flow over 37 years.
