Barrick Gold CEO projects $74bn free cash flow from Reko Diq over 37 years

Barrick Gold CEO projects $74bn free cash flow from Reko Diq over 37 years
January 21st, 2025

CEO of joint owner Barrick Gold said in a media interview, the Reko Diq copper and gold project in Pakistan is expected to generate $74 billion in free cash flow over the next 37 years, based on consensus long-term prices. Barrick Gold is a 50% owner of the Reko Diq mine and 50% are owned by the governments of Pakistan and the province of Balochistan. Bristow called the mine one of the world’s largest underdeveloped copper-gold areas and its development will positively influence the economy of Pakistan which has been facing difficulties. The project that was delayed due to a dispute that was ongoing for a long time came to an end in 2022 and it is expected to start production by the end of 2028. The cost of the first phase of the project, which will see the production of 200,000 tons of copper per year, is $5.5 billion. The first phase is to be completed by 2029, Barrick’s CEO Mark Bristow has told a Pakistani digital media outlet. It will double production, he added, for a second phase which is estimated to cost $3.5 billion. The mine is estimated to have reserves lasting 37 years, but through upgrades and expansions, it could be mined for much longer, said Bristow. $74 billion of free cash flow could generate significant dividends, royalties and taxes for Pakistan which currently has only around $11 billion in foreign reserves. Bristow said the project’s timeline is on track – fencing, accommodation and surveys have already been completed. Manara Minerals, a Saudi Arabian mining company could invest in Pakistan's Reko Diq mine in the next two quarters, Pakistani Petroleum Minister Musadik Malik said last week. Executives from Manara visited Pakistan in May last year to discuss a potential investment in the project. The country is also in talks with other Gulf countries about mining opportunities, Malik said.

Shandor Brenner

Shandor Brenner is an American journalist recognized for his sharp and insightful reporting on social and political issues. His work is known for its depth, integrity, and the ability to highlight critical societal concerns.

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