Barrick Gold’s board of directors is reassessing all aspects of the company’s flagship gold and copper project in Balochistan following a sharp deterioration in security conditions and a recent surge in attacks in the region, the company’s chief executive said.
According to a report by Reuters, Barrick Gold Chief Executive Officer Mark Hill told analysts during a post-earnings conference call that growing security concerns had prompted the board to initiate a comprehensive review of the Reko Diq project. He said the reassessment would cover the allocation of capital, security arrangements, construction timelines and the overall investment framework.
Mr. Hill said the review process had begun immediately and that the company would provide an update once the evaluation was completed and the implications for the project were clearer.
The ownership of the Reko Diq gold and copper project is divided between Barrick Gold, which holds a 50 percent stake, three Pakistani federal state-owned entities with a combined 25 percent share, and the government of Balochistan, which holds the remaining 25 percent.
Barrick Gold is a Canadian multinational mining company operating under an agreement with the Pakistani state to develop the Reko Diq deposit in the Chagai district. The project is regarded as one of the largest undeveloped copper and gold reserves in the region. The company also took over operations at the Saindak project following an agreement signed with the Pakistani government in 2022.
Since Barrick Gold assumed control of major mining projects in the area, sections of the local population have raised concerns about land use, access to economic benefits and employment practices. Community representatives have repeatedly alleged that local residents receive limited benefits from the projects and that non-local workers are often given preference for jobs. Company and government officials have previously said the projects would bring long-term economic gains, though grievances persist.
The reassessment comes amid a wider security escalation across Balochistan. During the past week, the Baloch “pro-independence” group Baloch Liberation Army started carrying out coordinated attacks under the second phase of its “Operation Herof” across multiple districts, including Chagai, where the Reko Diq project is located.
In statements issued during and after the “Operation Herof,” BLA warned foreign and Pakistani companies to halt operations in Balochistan, alleging that resource extraction was being carried out against the wishes of the Baloch people. The group said that international investors and companies involved in mineral projects would be viewed as supporting Pakistan’s control over the territory, a claim the Pakistani state rejects.
There has been no public response from Barrick Gold to the statements issued by the Baloch Liberation Army. Pakistani authorities have also not commented directly on the company’s internal review, though officials have repeatedly said that security for strategic projects remains a priority.
Analysts say the developments highlight the growing risks facing large-scale investment projects in Balochistan, where recurring attacks, political uncertainty and long-standing local grievances continue to shape the operating environment for both domestic and international investors.