Reko Diq to Generate $74 Billion in Free Cash Flow
Deal News | Jan 21, 2025 | Zawya
The Reko Diq copper and gold mining project in Pakistan is projected to generate $74 billion in free cash flow over a period of 37 years. Owned jointly by Barrick Gold and the governments of Pakistan and Balochistan, the project aims to alleviate Pakistan's economic challenges. Following a settlement of long-standing disputes in 2022, production is expected to commence by the end of 2028, with the first phase costing $5.5 billion and producing 200,000 tons of copper annually. The second phase will double this output with a cost of $3.5 billion. CEO Mark Bristow highlighted the mine's expansive potential beyond its initial reserve estimate. Barrick is collaborating with Pakistani infrastructure providers to facilitate transportation needs. Discussions are ongoing with Manara Minerals, which may invest in the mining project, and similar talks with other Gulf nations are underway.
Sectors
- Mining
- Infrastructure
- Economic Development
Geography
- Pakistan – The Reko Diq project is located in Pakistan and involves the Pakistani and Balochistan governments.
- Saudi Arabia – Saudi Arabian company Manara Minerals is considering investment in the Reko Diq mine, highlighting cross-country economic ventures.
Industry
- Mining – The article focuses on the Reko Diq copper and gold mining project, highlighting its development, projected cash flow, and economic impact.
- Infrastructure – Barrick Gold is working on infrastructure aspects such as railways and transport facilities to support mining operations.
- Economic Development – The project's potential impact on Pakistan's economy, including foreign reserves and investment, denotes a focus on economic growth.
Financials
- $74 billion – Expected free cash flow generated by the Reko Diq project over 37 years.
- $5.5 billion – Cost of the first phase of the Reko Diq project estimated to complete by 2029.
- $3.5 billion – Estimated cost of the second phase of the Reko Diq project to double production.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Barrick Gold | Joint Owner | Company | Owns a 50% stake in the Reko Diq project and is a major player in the mining sector. |
| Government of Pakistan | Joint Owner | Government | Owns a stake in the mining project, aiming to boost the national economy. |
| Government of Balochistan | Joint Owner | Government | Owns a stake in the project, contributing to regional economic development. |
| Manara Minerals | Potential Investor | Company | A Saudi Arabian mining company exploring investment opportunities in the Reko Diq mine. |