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Sunday, November 26, 2023

First production from Reko Diq mine expected in 2028

2028 has been targeted for the first production from the giant copper and gold mine in the Balochistan province.

The giant copper-gold mine Reko Diq in Balochistan is expected to see its first production in 2028. The feasibility study will be finalized by the end of next year.

According to the details, the President and Chief Executive Mark Bristow of Barrick Gold Corporation met with Balochistan chief minister Abdul Quddus Bizenjo and other provincial leaders to brief them on the extensive social and economic development opportunities that would be generated by the mine, which is expected to have a life of at least 40 years.

He revealed that following the completion of legal processes and definitive transaction agreements with the Pakistan and Balochistan governments last month, the company planned to finish the Reko Diq project’s feasibility study update by the end of 2024.

Read more: Reko Diq deal gets Supreme Court’s approval

Meanwhile, 2028 has been targeted for the first production from Reko Diq, the giant copper and gold mine in the Balochistan province. Regarding the construction phase, the CEO explained that it would take around three years starting in 2025 and they expected to make the first production in 2028.

Developments in Balochistan

Reko Diq will be operated by Barrick, which owns 50% of the project, with Balochistan holding 25% and three Pakistani state-owned enterprises sharing the remaining 25%. The shareholding structure is in line with Barrick’s policy of benefit-sharing partnerships with its host countries. Pertinent to mention that the Reki Diq $9 billion deal is the biggest-ever investment in Pakistan’s history.

Pakistan’s government has granted a 15-year tax exemption to the project. However, Bristow added that they would pay royalties to Balochistan and invest in the local community to execute different water and educational projects.

Read more: Fine in Reko Diq case a ‘nuclear bomb’: SC judge

The company will ensure that the people of Balochistan start reaping the benefits of the project well before the mine goes into production. The agreement provides for an initial payment of $3 million this month.