Definitive agreements to restart the Reko Diq copper/gold project, in Pakistan, are being finalised, which will pave the way for the feasibility study to be updated, Canada-based Barrick Gold reported on Monday.

In a statement following a meeting between CEO Mark Bristow and Pakistan Finance Minister Miftah Ismail, the gold major reaffirmed its commitment to develop Riko Diq as a world-class mine that will create value for the county and its people.

The mine will be operated by Barrick and owned 50% by the company, 25% by the Balochistan provincial government and 25% by Pakistani State-owned enterprises.

Barrick and the federal and Balochistan governments earlier this year reached an agreement that provides for the reconstitution and restart of the project, which has been on hold since 2011.

“During the negotiations the federal government and Barrick confirmed that Balochistan and its people should receive their fair share of the benefits as part of the Pakistan ownership group,” Bristow said.

“At Barrick we know that our long-term success depends on sharing the benefits we create equitably with our host governments and communities. At Reko Diq, Balochistan’s shareholding will be fully funded by the project and the federal government, allowing the province to reap the dividends, royalties and other benefits of its 25% ownership without having to contribute financially to the project’s construction or operation.

“It’s equally important that Balochistan and its people should see these benefits from day one. Even before construction starts, when the legalisation process has been completed we will implement a range of social development programmes, supported by an upfront commitment to the improvement of healthcare, education, food security and the provision of potable water in a region where the groundwater has a high saline content,” added Bristow.

Ismail stated on Twitter that Bristow had a "very enlightened vision for the mine" and that he believed the investment would be "transformational for Balochistan and Pakistan".

The development of Reko Diq represents the biggest direct foreign investment in Balochistan and one of the largest in Pakistan.

“Like Barrick, we believe that the future of mining lies in mutually beneficial partnerships between host countries and world-class mining companies. The Reko Diq agreement exemplifies this philosophy and also signals to the international community that Pakistan is open for business,” Ismail said. 

The feasibility study update will take two years and first production of copper and gold is expected in 2027 or 2028.

Subject to the updated feasibility study, Reko Diq is envisaged as a conventional openpit and milling operation, producing a high-quality copper-gold concentrate. It will be constructed in two phases, starting with a plant that will be able to process about 40-million tonnes a year, which could be doubled in five years.

With its unique combination of large scale, low strip and good grade, Reko Diq will be a multi-generational mine with a life of at least 40 years.

During peak construction the project is expected to employ 7 500 people and once in production it will create 4 000 long-term jobs. Barrick’s policy of prioritising local employment and suppliers will have a positive impact on the downstream economy.