The first production is anticipated for the Reko Diq project in 2028
The Reko Diq Mine is a projected mining operation that is situated close to Reko Diq town in Baluchistan, Pakistan’s Chagai District. [1] With estimated reserves of 5.9 billion tonnes of ore grading 0.41% copper and gold reserves totaling 41.5 million oz, Reko Diq represents one of the greatest copper and gold reserves in the world. [2]
The Tethyan Magmatic Arc, which passes through Myanmar, Malaysia, Indonesia, and Papua New Guinea, as well as central and southeast Europe (Hungary, Romania, Bulgaria, and Greece), Turkey, Iran, and Pakistan, extends across the Himalayan region. It has an abundance of substantial deposits of different grades of copper-gold ore.
As host to world-class mineralization like Grasberg, Batu Hijau in Indonesia, Ok Tedi in Papua New Guinea, and Sar Cheshmeh in Iran, the eastern and central portions of the belt are well known. While the world-class porphyry/epithermal cluster of Bor, Majdanpek in Serbia, and more recent breakthroughs like Skouries and Olympias Greece, as well as öpler in Turkey, are located in eastern Europe.
In the Chagai volcanic chain of mountains, which spans Balochistan between the Quetta-Taftan Line railway and the Afghan border, the Reko Diq region is one of numerous eroded remnant volcanic sites. At Reko Diq, TCC has discovered a sizable, low-grade copper-gold deposit.
The first production is anticipated for the Reko Diq project in 2028:
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Following approval from Pakistan’s top court and parliament, Canadian mining company Barrick Gold Corporation (BGC) announced on Friday that it has finished reconstituting one of the largest undeveloped copper-gold mines in the world.
To restart the Reko Diq mining project and resolve a protracted $11 billion dispute, Pakistan signed the final agreement with Barrick and Antofagasta PLC representatives in London on Thursday. The change occurred when the settlement accord gained a “favorable opinion” from the Supreme Court and the necessary legislation was enacted.
As a result of the agreement, Barrick will own 50% of Reko Diq, followed by three state-owned companies — the Oil and Gas Development Company Limited (OGCDL), Pakistan Petroleum Limited (PPL), and Government Holdings Private Limited (GHPL), each owning 25%; Balochistan, 15%; and the province as a whole, 10%.
The conclusion of the legal procedures, according to Barrick President and CEO Mark Bristow, is essential for the development of Reko Diq into “a world-class, long-life mine” that will significantly increase the company’s copper portfolio and “benefit its Pakistani stakeholders for generations to come.”
What percentage of Reko Diq is made of gold?
Reko Diq is a sizable copper and gold deposit with 12.3 million tonnes of copper and 20.9 million ounces of gold in inferred and indicated resources that are situated in the Chaghi District of Balochistan in Pakistan.
Reko Diq made a deal with whom?
To revive and advance the Reko Diq project, Pakistan and Barrick Gold struck an out-of-court deal in March 2022. The TCC collaboration was created by Chilean Antofagasta and Canadian Barrick Gold.
Funds for Reko dig project:
Tethyan Copper Company Limited (“Tethyan”), a joint venture between Antofagasta PLC and Barrick Gold Corporation (“Barrick”), is owned by Antofagasta PLC, which is controlled by the Luksic Group of Chile. South-west Pakistan’s Balochistan province is home to the Reko Diq copper-gold mine, which Tethyan hopes to develop. The Government of Balochistan (the provincial government) and Tethyan have a combined 75% interest in an exploration license including the Reko Diq deposit, giving the Antofagasta company an effective interest of 37.5%.
The estimated 5.9 billion tonnes of mineral resources at Reko Diq have an average copper grade of 0.41% and an average gold grade of 0.22 g/tonne. the 37.5% of this resource that can be attributed to the Group worth of 2.2 billion tones.
How much benefit will Pakistan avail through the Reko dig project?
Reko Diq was a special project because its mining lifespan was 47 years, compared to the global average of 17 to 20 years for copper mines.
According to the experts, the project can produce 400,000 tonnes of copper yearly and is one of the top 10 copper mines in the world.
With equity, taxes, and royalties included, the predicted economic gain to the government of Balochistan for the next 40 years is pegged at $32 billion.
The accord would benefit Pakistan greatly.
The confirmation came after Justice Yahya Afridi, a member of the SC bench, requested Additional Attorney General Chaudhry Aamir Rehman to approach the advisors for a written confirmation that this was Pakistan’s best course of action given the circumstances.
