Security concerns delay progress on Pakistan’s Reko Diq project

Barrick Gold Corporation said it will extend its review of the Reko Diq project by 12 months, citing heightened security concerns in Pakistan and the Middle East.

In a statement, Barrick said it “continues to believe in the long-term value of Reko Diq,” but added that “following the preliminary findings of the review announced on Feb. 5, and the more recent escalation in security issues in Pakistan and the Middle East, the company considers it necessary to extend the review period by 12 months from July.”

The company said it will use the extended period “to continue to assess the potential impacts and delivery strategy of the project”.

Barrick noted that development activity at the site will slow during the review but will not stop entirely. “During that period, development activity will be slowed but remain under active management,” the statement said.

The company also warned that the decision could affect earlier projections. “It is anticipated that the extended review and reduced pace of development is likely to impact previously stated budgets and timelines,” Barrick said.

Barrick added that it will update investors when more information becomes available, saying it “will provide a further update to the market when it is appropriate.”