Barrick Mining (TSX: ABX) has moved to throttle development at its Reko Diq copper-gold project in Pakistan, signaling that escalating regional instability has finally caught up with one of the industry’s most ambitious growth assets. The company announced Thursday evening that it will extend a strategic project review until mid-2027, effectively slowing activity at the site while it reassesses the security landscape and capital requirements.
The decision follows a preliminary audit initiated in February, which flagged a deteriorating safety environment in Balochistan and the broader Middle East. While Barrick stopped short of a total suspension, the cautious slowdown marks a significant pivot for a project previously fast-tracked to meet a late-2028 production target.
Capital discipline appears to be the secondary driver behind the move. Barrick warned that the extended review and moderated pace are likely to result in significant increases to previously disclosed budgets and timelines. Phase 1 costs were originally pegged between $5.6 billion and $6.0 billion, with an additional $3.3 to $3.6 billion slated for Phase 2.
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The project will remain under active management, and Barrick reiterated its commitment to local social programs and its long-term belief in the asset’s value. However, the market’s reaction has been one of wary pragmatism.
Reko Diq is one of the largest undeveloped copper-gold deposits in the world, holding an estimated 15 million tonnes of copper. For Barrick, the project is a cornerstone of its strategy to diversify into the red metal as global electrification drives demand.
But for now, that transition is on hold. The 12-month extension gives the company breathing room to see if the regional security situation stabilizes before it commits the billions required to bring the mine to life.
Barrick Mining last traded at $58.04 on the TSX.
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