Barrick Gold (NYSE: GOLD) (TSX: ABX) said on Monday its 50%-owned Reko Diq copper and gold project in Pakistan is projected to generate approximately $74 billion in free cash flow over the next 37 years, based on consensus long-term prices.
Speaking to local media, chief executive Mark Bristow said an initial estimated capital expenditure of $5.5 billion will be allocated to develop the first phase of the mine. During this phase, Reko Diq, in which by the governments of Pakistan and the province of Balochistan have a combined 50% stake, is expected to produce 200,000 tonnes of copper concentrate and 250,000 ounces of gold annually.
In an interview with Pakistani digital media outlet Dawn News, Bristow confirmed that the starter mine is scheduled for completion by 2029. A second phase, requiring an additional investment of $3.5 billion, is projected to double production, he added.
Reko Diq is a critical component of Barrick’s strategy to expand its footprint in copper, a metal central to the global energy transition. The project is located in the Chagai mountain range, part of the Tethyan Magmatic Arc, known for its rich copper-gold deposits.
Barrick has long maintained that Reko Diq is one of the world’s largest undeveloped copper-gold prospects. It also boasts a high copper grade of 0.53%, meaning that for every tonne of ore mined, about five kilograms of copper can be extracted. Once the expansion is complete, the mine is expected to process over 90 million tonnes of ore annually.
The mine is estimated to have reserves lasting 37 years, but Bristow said that through upgrades and expansions it could potentially be mined for more than 50 years.
The project has 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).
Executives from Manara visited Pakistan last year for talks about buying a stake in the project. Pakistani Petroleum Minister Musadik Malik said last week talks were progressing and that he expected an investment from Manara to come “in the next two quarters.”
Bristow has said that Barrick would support any decision made by the Pakistani government in collaboration with the Saudis, but the company will not dilute its equity in the project.
Source: MINING.COM – Read More
