The Reko Diq project in Pakistan is poised to become one of the world’s largest copper-gold operations after Barrick Gold (NYSE: GOLD) (TSX: ABX) revealed plans to launch production by the end of 2028 with an initial $5.5 billion investment to develop the first phase of the mine.
The Reko Diq copper and gold project, in which Barrick owns 50% - along with the governments of Pakistan and the province of Balochistan - is projected to generate around $74 billion in free cash flow over the next 37 years, based on consensus long-term prices.
However, through upgrades and expansions Barrick believes the project could potentially be mined for more than 50 years.
Speaking to local media, CEO Mark Bristow said Phase one is expected to produce 200,000 tonnes of copper annually and 250,000 ounces of gold annually, followed by a $3.5 billion expansion to double that output.
Bristow has also confirmed that the starter mine is scheduled for completion by 2029.
With a high copper grade of 0.53% - meaning that for every tonne of ore mined, about five kilograms of copper can be extracted - Barrick has been a long-term believer in Reko Diq's potential as one of the world’s largest undeveloped copper-gold prospects.
Once the expansion is complete, the mine - which is located in the Chagai mountain range, part of the Tethyan Magmatic Arc, known for its rich copper-gold deposits - is expected to process over 90 million tonnes of ore annually.
The project is also understood to have gauged interest from global investors, including Saudi Arabia’s Manara Minerals, a joint venture between state-controlled miner Ma’aden and the $925 billion Public Investment Fund (PIF).
Pakistani Petroleum Minister Musadik Malik expects an investment from Manara to come “in the next two quarters”.
While Bristow is willing to support any decision made by the Pakistani government in collaboration with the Saudis, he said the company is not willing to dilute its equity in the project.