The Reko Diq mining project, set to become Pakistan’s largest Western investment, is projected to generate over $75 billion in cash flows during its 37-year lifespan, according to Petroleum Minister Ali Pervaiz Malik. In a recent National Assembly session, Malik outlined key details of the project’s fiscal terms, production phases, and community benefits.
Phase one, expected to begin in 2028, will target an annual production of 300,000 ounces of gold and 200,000 tons of copper. In 2034, phase two will increase production to 500,000 ounces of gold and 400,000 tons of copper per year. The minister indicated that these conservative projections could potentially lead to cash flows exceeding $100 billion, contingent on commodity price increases.
The Reko Diq project, operated by Barrick Gold, includes substantial fiscal advantages for Pakistan, particularly the province of Balochistan, which holds a 25% stake in the venture. The provincial government will receive a 5% royalty on the project’s revenue, while the federal government will earn a 1% net smelter return. Furthermore, the project has already made advance royalty payments totaling $5 million in the first year, with an expected $10 million annually from 2028.
The project will also bring notable community and environmental benefits. Since 2022, $5.3 million has been invested in education, healthcare, clean water access, and skills training. The project’s construction phase is expected to generate around 7,500 jobs, with 4,000 long-term positions once operational. The workforce will largely consist of locals, with 77% of the employees expected to be from Balochistan.
Governance of the project includes a board chaired by the Chief Secretary of Balochistan and comprising members from the Mines and Minerals Department, Barrick, and federal state-owned enterprises. This board will ensure transparency and monitor the project’s progress on a quarterly basis. The government has emphasized that the project will be a cornerstone for the region’s economic growth, providing long-term, sustainable jobs and contributing to the local economy.