Key Takeaways
- Pakistan is poised to become a key player in the global critical minerals market.
- The Reko Diq Copper and Gold Project is set to significantly boost the country's economy.
- The project is expected to generate substantial economic benefits and create jobs.
Pakistan is entering a new phase in its mineral economy, capitalizing on rising global demand for critical minerals such as copper, gold, and lithium. The country's strategic location within the Tethyan Metallogenic Belt, one of the world's important copper and gold regions, presents a significant opportunity for investment and diversification.
According to the Institute of Cost and Management Accountants of Pakistan (ICMA), Pakistan possesses 92 known minerals, with 52 commercially exploited, and an estimated $8 trillion in mineral reserves spread across 600,000 square kilometres. The mining sector historically contributes less than 3 percent to GDP, but with stronger governance and security, annual mineral exports could rise to $8 billion, potentially boosting GDP growth to 6 percent.
The Reko Diq Copper and Gold Project, located in Balochistan’s Chagai district, is a major contributor to this potential. The project, a joint venture between Barrick Mining Corporation (50 percent), the Balochistan government (25 percent), and three federal state-owned enterprises (25 percent), is set to transform the region economically.
In February 2025, Barrick announced the completion of the updated feasibility study for the Reko Diq project, which estimates a 37-year mine life with total capital investment of $8.83 billion. The project will be developed in two phases, with Phase 1 requiring an estimated $5.6–$6.0 billion and first production expected by the end of 2028.
Phase 1 will process 45 million tonnes of ore annually, producing about 240,000 tonnes of copper and 297,000 ounces of gold per year. Phase 2, planned for 2034, will double processing capacity to 90 million tonnes annually, raising average annual production to 460,000 tonnes of copper and 520,000 ounces of gold during its first 10 years.
The feasibility study estimates probable mineral reserves of around 3 billion tonnes, containing an estimated 15 million tonnes of copper and 26 million ounces of gold. Barrick estimates the project could generate $90 billion in operating cash flow and $70 billion in free cash flow over its mine life, making it the largest foreign direct investment project in Balochistan and one of the
The project is expected to have a transformative impact on the Balochistan province, generating significant economic benefits and creating jobs. With strong governance and security, Pakistan's mining sector could see substantial growth, contributing more to the country's GDP and foreign exchange earnings.
