Speculations are swirling in the mining world following recent restructuring at Barrick Mining. The company reassured investors that its Reko Diq project in Pakistan remains a top priority.
Interim CEO Mark Hill, who replaced longtime CEO Mark Bristow, emphasized that Barrick’s dedication to the $7 billion copper-gold venture is unchanged. Bristow had initially promised to stay three more years to oversee the development of Reko Diq.
The leadership change sparked concerns about the future of Barrick’s international assets. The board is reportedly considering a portfolio split, which could include the sale of high-risk projects in Pakistan and Africa. Some shareholders worry these regions could affect the company’s valuation compared to its North American operations.
Despite uncertainties, Reko Diq remains the crown jewel for Barrick. The mine, jointly owned with the Pakistani government, is set to start production by 2028. Its first phase will produce 200,000 metric tons of copper annually, with output expected to double after expansion. Additionally, the project adds 13 million ounces to Barrick’s gold reserves in 2024.
For Pakistan, Reko Diq is crucial for achieving its mineral resource goals. For Barrick, it represents one of the company’s largest long-term global investments. After resolving a lengthy legal dispute, Barrick returned to Pakistan in 2022, paving the way for the mine’s revival.
The Oil and Gas Development Company Limited (OGDC) reassured stakeholders that the internal restructuring at Barrick will not affect project timelines or outputs. Multiple stakeholders are involved, ensuring continuity and strategic oversight.
Analysts say that while Barrick’s broader restructuring may influence international investments, Reko Diq’s strategic importance keeps it secure. Both Pakistan and Barrick remain committed to completing the mine and reaping its economic benefits.
In other news read more about: ECC Approves Agreements Related to Reko Diq Project Financing
