Barrick Gold Corporation will invest over $70 million in the social infrastructure of Balochistan and the Reko-Diq copper-gold project will create 7,500 jobs initially.
The President and Chief Executive of Barrick Gold Corporation, Mark Bristow, said that the Reko Diq copper-gold project — a partnership between the company, the Government of Balochistan, and Pakistani state-owned enterprises — will create substantial value for the province through multiple generations.
After his meeting with the provincial Chief Minister, Abdul Quddus Bizenjo, Bristow said that in the negotiations, Barrick and the Government of Pakistan had worked to ensure that Balochistan would receive a substantial share of the benefits generated by Reko Diq.
“Balochistan’s shareholding in Reko Diq will be fully funded by its partners and the federal government, which means that the province will reap the dividends, royalties, and other benefits of its 25 percent ownership without having to contribute financially to the construction and operation of the mine,” he explained.
Bristow added, “It’s equally important that Balochistan and its people should see these benefits quickly. Even before construction starts, once the legalization process has been completed, we will implement a range of social development programs, supported by an upfront commitment to the improvement of healthcare, education, vocational training, food security, and the provision of potable water. Social contributions are currently estimated to amount to around $70 million over the construction period, including upfront commitments of up to $3 million in the first year following closing and up to $7 million in year two.”
Furthermore, Reko Diq will advance royalties of up to $5 million to the Government of Balochistan in the first year following closing, up to $7.5 million in the second year, and up to $10 million per year thereafter until commercial production starts, subject to a cumulative $50 million of advance payments.
Also subject to the updated feasibility study, Reko Diq is envisaged as a conventional open pit and milling operation, producing a high-quality copper-gold concentrate. It will be constructed in two phases, starting with a plant that will be able to process approximately 40 million tonnes of ore per annum which can be doubled in five years after the first production from phase one.
With its unique combination of large scale, low strip, and a good grade, Reko Diq will be a multi-generational mine with a life of at least 40 years. During peak construction, the project is expected to employ 7,500 people. Once in production, it will create 4,000 long-term jobs.
Barrick’s policy of prioritizing local employment and suppliers is expected to have a positive impact on the local economy.
