ISLAMABAD — Pakistan and Barrick Gold Corporation are conducting a formal review to upgrade the security infrastructure for the multi-billion dollar Reko Diq Copper-Gold Project in Balochistan. Triggered by the prevailing security situation, these necessary upgrades are expected to increase overall project security costs. Both sides are currently reviewing procurement plans and safety arrangements as stipulated under the original project agreement.
Key Highlights
- Pakistan and Barrick Gold are formally reviewing security upgrades, which will increase project costs.
- Host country Pakistan holds sole responsibility for protecting the Reko Diq mining site.
- International lenders expressed confidence in existing protocols during a recent meeting in Canada.
- Petroleum Minister Ali Pervaiz Malik hinted at domestic gas tariff relief starting July 1.
- Local gas production has been increased by 400 mmcfd to combat recent supply disruptions.
Pakistan and Barrick Mining Corporation are reviewing and upgrading security arrangements for the multi-billion-dollar Reko Diq Copper-Gold Project amid changing conditions that have increased security-related costs.
According to OGDCL CEO Ahmad Hayat Lak, a Barrick Gold… pic.twitter.com/ms2VXRojEM
— Bloom Pakistan (@bloom_pakistan) June 4, 2026
Investor Confidence and Strategic Procurement
Despite local and global challenges, Barrick Gold remains fully committed to the massive mining venture. A high-level delegation, led by Barrick Executive Chairman John L. Thornton, recently visited Islamabad to finalize procurement strategies and evaluate additional safety funding. Ahmad Hayat Lak, CEO of project partner OGDCL, noted that international lenders completed strict due diligence before committing funds and expressed complete confidence in the project’s security protocols during a recent meeting in Canada. Furthermore, new financial backers are showing strong interest in joining the credit and lending structures of the venture.
Upcoming Gas Tariff Relief and Energy Revisions
Alongside the mining updates, Petroleum Minister Ali Pervaiz Malik brought welcome news for the public, hinting at a reduction in gas tariffs for domestic consumers in the upcoming pricing review effective July 1. To shield the public from high power costs, the government has decided to lower the price of gas supplied for power generation from Rs3,500 per mmBtu (for LNG) to Rs2,000 per mmBtu. A summary will soon be sent to the federal cabinet to permanently align these rates with local gas pricing.
Additionally, the Petroleum Division has increased local gas production by 400 million cubic feet per day (mmcfd) to counter recent supply disruptions and has drafted new proposals to tackle the energy sector’s circular debt. Officials also expressed optimism that the International Monetary Fund (IMF) will approve policy concessions aimed at upgrading and modernizing local oil refineries.
