Overview
Barrick Mining, the Toronto-based miner, has announced a temporary slowdown of development activity at the Reko Diq copper and gold project in Pakistan. The company informed its Pakistani equity partners and the project's local operator that beginning in July it will reduce on-site development and corresponding capital expenditure for a 12-month period.
Reason for the pause
The move follows a review of the Reko Diq development that Barrick initiated last month after a noted rise in separatist violence in Balochistan, the Pakistani province that hosts the mine. In explaining the decision, Barrick cited the preliminary findings of that review and the subsequent deterioration in security conditions both in Pakistan and elsewhere in the Middle East. The company said these developments make further assessment of potential impacts and the project delivery strategy necessary before continuing at the previously planned pace.
Operational and financial implications
As communicated to project partners, the slower development timetable and the review period will affect budgets and the timelines that had been previously stated for the project. The company has signalled reduced project spend during the 12-month slowdown, though it has not provided additional detail on the magnitude of the reductions or on any adjustments to financing arrangements.
Next steps and company response
Barrick framed the action as a measured response to heightened security uncertainty and the need to refine its delivery approach in light of the review findings. The company declined to provide further comment when asked about the decision.
Note: Information in this report reflects the statements and steps described by the company to its partners and local operator, including the timing of the slowdown and the stated reasons for it. The company has not supplied additional public detail on budgetary or schedule adjustments beyond those points.