Barrick describes Reko Diq as 'a very big deal'

Welcomes possible Saudi investment; Says project will bring development to Balochistan

LONDON (Web Desk) – Describing Reko Diq as one of the bigger undeveloped copper-gold projects in the world, Barrick Gold says the venture would bring much-needed development to Balochistan – the least developed province in Pakistan.

“It’s a very big deal. Any copper mine right now is a big deal,” said Mark Bristow, who is the Barrick Gold chief executive, in an interview to Financial Times – the prestigious British business daily also known as FT.

“Mining, when it goes into emerging markets, is obsessed with getting its money back,” he said. “We’ve learned that you start paying benefits and dividends early on.”

Barrick owns a 50 per cent stake in Reko Diq, with the remaining 50pc owned by the governments of Pakistan and the province of Balochistan.

According to FT, Barrick and Pakistani authorities say Reko Diq will not only be Pakistan’s largest foreign fixed investment but a vital source of copper — a key component for the world’s energy transition — at a time when global supplies are barely likely to meet demand.

To deal with violence that has plagued Balochistan since 200s, the newspaper claims, Barrick has turned to Pakistan’s powerful army.

“The military are a steadying hand,” Bristow said. “They are absolutely essential on the security side.”

Talking about the project’s potential, the newspaper also quoted senior PML-N leader and former planning minister Ahsan Iqbal as saying that Reko Diq would “put Balochistan on the mining map of the world”.

THE SAUDI FACTOR

Meanwhile, Bristow has also welcomed the potential Saudi interest in Reko Diq and dismissed hand-wringing over whether he can see through the project.

Read more: Saudi Arabia to invest $25bn in Pakistan over next five years: PM Kakar

“When you look at the world, it is more complex than when I started,” he said. “Gone are the days that you can control a mining company from a multi-storey, cushy building in the developed world.”

The latest remarks about the Saudi investment in Reko Diq are nothing new. Last month, Bristow had said that Barrick was open to bringing in Saudi Arabia's wealth fund as one of its partners in Reko Diq project.

At that time, Bristow had said Barrick won't be diluting its equity in the project but "will not mind" if Saudi Arabia's Public Investment Fund (PIF) wants to buy out the equity of the Pakistan government.

The FT says the Saudi investment can help steer the Reko Diq project as the involvement of one of Pakistan’s most important allies would help shield the project from future political U-turns.

If successful, the mine could turn the company into one of the world’s largest copper producers, the FT says about Barrick – the Canada-based gold and copper producer.

It is principally engaged in the production and sale of gold and copper, as well as related activities, including exploration and mine development.

The company has ownership interests in producing gold mines located in Argentina, Canada, Cote d'Ivoire, the Democratic Republic of the Congo, the Dominican Republic, Mali, Tanzania and the United States.