Barrick Mining has announced a slowdown in development activity at the Reko Diq copper-gold project in Balochistan, citing growing security concerns in Pakistan and the wider Middle East, according to reports by Bloomberg and Reuters.
The company stated that an ongoing review of the project, which began in February following an increase in attacks by the Baloch nationalist armed groups in Balochistan, will now be extended by an additional 12 months from July. As a result, previously announced timelines and budget estimates for the project are expected to be affected.
In a statement, Barrick said that while development activity would be slowed, the project would remain under active management. The company reiterated its position that it continues to see long-term value in Reko Diq.
Located in the remote Chagai district of Balochistan near the borders of Afghanistan and Iran, Reko Diq is considered one of the world’s largest undeveloped copper and gold deposits. Barrick has been involved in the project for over a decade, with renewed focus in recent years as part of efforts to expand its copper portfolio.
The development comes amid a reported rise in insurgent activity in Balochistan, where nationalist groups have long expressed opposition to resource extraction projects, some calling for a greater share of local mineral wealth and others, full independence of Balochistan.
Market analysts have also weighed in on the development. Josh Wolfson of RBC Capital Markets described the project as “highly out of favour” among investors due to its geopolitical risk profile, suggesting that delays could potentially signal future strategic changes, including a possible divestment.
Following the reports, Barrick’s shares reportedly declined by as much as 3.2 percent in New York trading.