Security costs for the multibillion-dollar Reko Diq copper and gold project in Balochistan are likely to increase as Pakistan and Barrick Mining Corporation review security arrangements for the project, Dawn reported on Thursday.
According to the report, the review is being carried out in view of the current security situation, with Pakistani officials and Barrick representatives discussing possible upgrades to the project’s security and procurement plans.
Ahmed Hayat Lak, chief executive officer of the Oil and Gas Development Company Limited (OGDCL), one of the key partners in the Reko Diq project, told journalists that a Barrick Gold team was currently in Pakistan and holding discussions on security upgrades.
He said the Reko Diq agreement contained clauses related to security arrangements and that the partners were reviewing whether existing measures needed to be improved and whether additional funds would be required.
“As the host country, Pakistan bears full responsibility for protecting the project site,” Lak said, according to Dawn.
Lak said lending institutions had expressed confidence in the current security arrangements during a recent meeting in Canada after completing their due diligence before making investment decisions. He added that new financial institutions were also showing interest in joining the project.
Petroleum Minister Ali Pervaiz Malik said Barrick’s executive chairman, John L. Thornton, recently visited Islamabad with a high-level delegation and discussed the security situation and procurement strategy with the government, Dawn reported.
Malik said Barrick remained committed to the project despite global and local challenges.
According to the report, the delegation also discussed the acquisition of modern heavy machinery, the competitive bidding process and the possibility of further expanding the project’s debt and financial structure.
The development comes as Baloch “pro-independence” armed organisations have repeatedly targeted Pakistani forces, mineral projects and companies linked to resource extraction in Balochistan, warning firms to withdraw from projects in the region.
Concerns over major mineral projects have grown after the Baloch Liberation Army (BLA) carried out large-scale attacks in more than 14 districts earlier this year under the second phase of “Operation Herof.”
Following the attacks, Barrick Gold held a meeting on security matters and said it was concerned about the security of the Reko Diq project, adding that further investment would be difficult if security-related issues were not resolved.
Last month, the BLA also announced what it called “complete control” over the Quetta-Taftan main highway, a key route linked to cargo movement and mineral transport connected to the Saindak and Reko Diq projects.
Since the announcement, more than 40 vehicles carrying minerals have been damaged in attacks, after which a transporters’ association announced a halt to mineral loading. The suspension is still continuing.
The BLA has said vehicles, companies and security personnel involved in what it described as the “looting of Baloch resources” would be targeted.
“We will no longer, under any circumstances, allow trucks, trailers, or any convoys carrying looted Baloch resources and minerals to pass through here,” the statement said.