BARRICK Mining is extending its review of the Reko Diq copper-gold project in Pakistan and slowing development activity, citing escalating security concerns in the country and the broader Middle East, according to reports by Reuters and Bloomberg News.
The review, which began in February following a rise in security incidents in Balochistan province, will now be extended by 12 months from July. Budgets and timelines previously disclosed for the project are likely to be affected, the company said on Thursday.
“Development activity will be slowed but remain under active management,” Barrick said. “Barrick continues to believe in the long-term value of Reko Diq.”
Located in Pakistan’s remote Balochistan province, bordering Afghanistan and Iran, Reko Diq is one of the world’s largest undeveloped copper-gold deposits. Barrick has been developing the project since at least 2011, making it a priority under former chief executive Mark Bristow as part of a push to expand copper exposure.
Balochistan has seen rising insurgent activity, with nationalist groups long demanding a greater share of the region’s mineral wealth. Pakistan’s security forces killed 145 militants in less than two days across the province last month.
RBC Capital Markets analyst Josh Wolfson said the project remained “highly out of favour” with investors given its geopolitical risk profile, and suggested a delay could be a precursor to a potential sale. Barrick shares fell as much as 3.2% in New York before paring losses.
