The Chinese-operated Saindak Metals Limited, which runs the Saindak copper and gold project in Chagai district of Balochistan, has expressed serious concern over the deteriorating security situation in the region and warned that it may be forced to suspend operations if conditions do not improve.
According to a report by the Financial Times, the managing director of Saindak Metals Limited wrote to Pakistan’s Ministry of Energy on 29 June, warning that the worsening situation in Balochistan was severely disrupting the transportation of equipment, supplies and production materials essential for the project. The letter stated that if current conditions persist, the company could be compelled to halt operations within the next month, as logistical support and the supply of critical materials continue to face significant obstacles.
The development comes at a time when security concerns and the condition of major highways across Balochistan are already causing alarm among both domestic and foreign investors. Earlier in March, Barrick Mining Corporation also announced delays to certain activities and timelines associated with the Reko Diq project, citing security-related challenges.
The warning from Saindak emerges against the backdrop of a rapidly changing security environment. Major highways across Balochistan have increasingly become the focus of armed activity, while the Baloch Liberation Army’s campaign of what it describes as an “economic blockade” has expanded in scope. Recent months have witnessed an increase in both the frequency and sophistication of attacks targeting security forces, mining-related infrastructure and commercial transport networks. Reports indicate that hundreds of vehicles carrying minerals and other commercial goods have been set ablaze in separate incidents this year. Transporters have repeatedly described key routes as unsafe, arguing that the authorities have failed to provide adequate security arrangements. Saindak’s warning of a possible suspension of operations highlights the wider reality of how vulnerable Balochistan’s transport corridors have become.
Highways are the backbone of both trade and large-scale development projects. The blockades, vehicle inspections, attacks and disruptions carried out by Baloch armed groups have significantly affected the movement of goods and personnel. The success of any mining venture depends not only on the availability of mineral resources but also on secure transportation networks and a stable security environment. In Balochistan, the state appears increasingly unable to guarantee either.
At the same time, armed groups operating in Balochistan have repeatedly warned international investors, particularly China, that the region does not offer a secure environment for investment. Over the years, Chinese nationals, engineers and individuals associated with investment projects have been targeted in a number of attacks, some of which resulted in fatalities.
The current situation in Balochistan, coupled with growing concerns among investors and project operators, underscores a broader reality: unless the political issues at the heart of the Baloch conflict are addressed in a meaningful and lasting manner, Balochistan is likely to remain a region marked by insecurity and uncertainty. Under such circumstances, committing to large-scale investment projects carries significant risks and raises serious questions about their long-term viability.