Barrick slows Reko Diq development amid rising security risks

Barrick Mining Corporation said Thursday it will slow development of its Reko Diq project in Pakistan and extend an ongoing review until mid-2027, citing escalating security risks.

The company said it continues to believe in the long-term value of Reko Diq but is reassessing multiple aspects of the project following a rise in security incidents in Pakistan and the broader region.

Barrick had announced on Feb. 5 that it was reviewing “all aspects of the project” in light of worsening security conditions. Following preliminary findings and further escalation of risks, the company said it now considers it necessary to prolong the review.

“The continued review will allow the company to assess in a comprehensive manner the evolving security situation, capital requirements, project financing, project scope and timeline,” it said.

Development slowdown

While development activity will be slowed, the project will remain under active management with reduced capital spending, Barrick said. Development of Phase 1 has been approved on this basis.

The company said it recognizes its role in the local community and will continue to invest in and honor existing in-country social and community programs.

Reporting by Nukta said the company plans to extend its review period by about 12 months, adding that development activity “will be slowed but remain under active management” during that time.

Costs and timeline

Barrick said there could be “significant increases” to the previously disclosed capital budget and project timeline.

The estimated capital cost for Phase 1 had been between $5.6 billion and $6.0 billion, while Phase 2 was projected at between $3.3 billion and $3.6 billion, both on a 100% basis and excluding financing costs. First production had been targeted by the end of 2028.

The extended review and slower pace of development are likely to affect previously stated budgets and timelines.

The company said it will continue to monitor the security situation in consultation with its joint venture partners and will provide an update to the market once the review concludes.