Reko Diq Project to Generate $2.8 Billion in First Year of Operation, Says Finance Minister

Pakistan’s Federal Finance Minister Muhammad Aurangzeb has projected that the Reko Diq copper-gold mining project will generate $2.8 billion in revenue in its first year of operation, slated for 2028. The mine, located in Balochistan’s Chagai district, is expected to produce 240,000 metric tons of copper and 300,000 ounces of gold annually during its initial phase. Production is anticipated to rise to 400,000 tons of copper and 500,000 ounces of gold annually in subsequent years, contributing approximately $4 billion to Pakistan’s exports—equivalent to 10% of current export levels.

The Reko Diq project, one of the world’s largest undeveloped copper-gold deposits, holds an estimated 15 million tons of copper and 26 million ounces of gold reserves. The mine is expected to operate until 2065 for copper and until 2077 for gold. Owned by Barrick Gold (50%), Pakistan’s federal government (25%), and the Balochistan provincial government (25%), the project is designed as a long-life open-pit operation with processing facilities capable of handling up to 90 million tons per annum by Phase Two in 2034.

Aurangzeb emphasized the strategic importance of copper in the global energy transition, noting its critical role in renewable energy technologies and electric vehicles. Global demand for copper is projected to rise significantly as electrification accelerates worldwide. He also highlighted the rising value of gold as a safe-haven asset amid geopolitical uncertainties, suggesting that Reko Diq could provide long-term economic stability for Pakistan.

However, Aurangzeb stressed the importance of ensuring equitable benefits for local residents in Balochistan, a province historically underdeveloped despite its rich mineral resources. Barrick Gold has committed to community initiatives, including education programs and clean water access for households near the mine. The government aims to balance national economic gains with local development to prevent unrest in the region.

The project also holds geopolitical significance as Pakistan seeks to offset potential economic damage from new U.S. tariffs on exports. With China controlling much of the global copper supply chain, Reko Diq positions Pakistan as a key player in diversifying critical mineral sources for international markets.