Islamabad, January 28, 2026 — Pakistan and Australia have discussed forging a structured Intergovernmental Agreement (IGA) to deepen long-term cooperation in the mining and mineral sector, tapping into the country’s vast untapped potential. Petroleum Minister Ali Pervaiz Malik proposed the IGA during a meeting with the new Australian High Commissioner Timothy Kane, building on earlier Australian suggestions for joint training and technical support in modern mining techniques.
Pakistan and Australia have agreed to further strengthen bilateral cooperation in the mining and gemstones sectors@PakinAustralia @ForeignOfficePk @AliPervaiz450 #RadioPakistan #News #PakistanAustralia https://t.co/pIGTGUStkX pic.twitter.com/Ax25GT878a
— Radio Pakistan (@RadioPakistan) January 27, 2026
Key Highlights
- Minister Ali Pervaiz Malik proposed an Intergovernmental Agreement (IGA) for structured, sustained collaboration in mining and gemstones.
- Discussions highlighted Pakistan’s immense mineral wealth, especially in the Tethyan Belt, including copper, gold, coal, zinc, and precious resources in Balochistan, Gilgit-Baltistan, and Azad Kashmir.
- Australian companies, already involved in the Reko Diq copper-gold project through Barrick Gold, expressed keen interest in further participation.
- The Australian High Commissioner encouraged strong attendance at the upcoming Pakistan Minerals Investment Forum (PMIF) and optimism for gemstone sector collaboration via knowledge exchange and training.
- Historical Australian involvement includes BHP Billiton’s role in discovering Reko Diq in the 1990s, with reserves now estimated at 13.1 million tonnes of copper and 17.9 million ounces of gold over the mine’s life.
Renewed Focus on Mutual Benefits
The meeting reviewed avenues for enhanced bilateral ties in mining, with the minister welcoming Australian firms’ strong interest and briefing the envoy on government steps to formalise the gemstones sector for value addition, exports, and job creation. High Commissioner Kane noted the global demand for copper and gold in the energy transition, positioning Pakistan’s resources as increasingly attractive to international investors.
He reiterated that Australian companies remain active in Reko Diq and that more firms are eager to join. The diplomat also expressed hope for deeper collaboration in gemstones through technical assistance and training programmes — an area where Australian expertise could help unlock Pakistan’s potential.
Reko Diq: A Cornerstone of Partnership
The conversation touched on Reko Diq’s legacy: first identified in the early 1990s through collaboration between the Geological Survey of Pakistan and Australia’s BHP Billiton. After BHP’s exit and subsequent changes in ownership, the project — now led by Barrick Gold with Pakistani stakeholders — is advancing toward production. Recent feasibility studies confirm a phased approach: 45 million tonnes per annum (Mtpa) in Phase 1 starting 2028, scaling to 90 Mtpa by 2034, with a projected 25 percent return on investment.
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This renewed dialogue reflects Pakistan’s push to attract responsible foreign investment while leveraging proven partners like Australia. For a country rich in resources yet seeking sustainable development, such agreements could mean technology transfer, skill-building for local communities, and stronger economic corridors — all vital as Pakistan works to turn mineral wealth into lasting national progress.
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