Reko Diq feasibility study completed, OGDCL confirms $627m investment

ISLAMABAD: The Oil and Gas Development Company Limited has announced the completion of the Reko Diq feasibility study, confirming investment of $627 million in the project, ARY News reported quoting OGDCL.

According to spokesperson, the company holds an 8.33% stake in the $5.6 billion Reko Diq mining project, which is expected to yield 13.1 million tonnes of copper and 17.9 million ounces of gold over its 37-year lifespan.

The project, a joint venture between OGDCL, Pakistan Petroleum Limited (PPL), Government Holdings (Private) Limited (GHPL), Barrick Gold Corporation, and the Balochistan government, is expected to commence production in 2028.

The first phase of the project will process 45 million tonnes of ore per annum, with plans to increase capacity to 90 million tonnes per annum by 2034.

The OGDCL board of directors has approved financing arrangements for the project, with shareholder equity contributions estimated at $349 million.

The project’s completion is expected to significantly boost Pakistan’s copper and gold production, with the Reko Diq project anticipated to contribute to the country’s mineral output for the next 37 years.

“Reko Diq is one of the bigger copper-gold undeveloped projects in the world,” said Mark Bristow, chief executive of Barrick, which aims to start mining in 2028 subject to an ongoing feasibility study. “It’s a very big deal. Any copper mine right now is a big deal.”

In December 2023, Pakistan and Barrick Gold Corporation signed $8 billion landmark agreement on Reko Diq project.

Reko Diq is one of the world’s largest undeveloped copper-gold mines. The project is being restarted after remaining on hold since 2011.

A delegation of Barrick Gold during meeting a with Prime Minister Shehbaz Sharif provided an update on the project and stated that the feasibility study will be finished by the end of 2024.