Pakistan and Barrick Mining Corporation are reviewing security arrangements for the multi-billion-dollar Reko Diq copper and gold project, a move that could lead to higher security spending as regional tensions and project requirements evolve.
Officials confirmed that a Barrick delegation is currently in Pakistan to discuss potential security upgrades and procurement plans for the project. The review is being conducted under provisions already included in the Reko Diq project agreement.
OGDCL Chief Executive Officer Ahmad Hayat Lak said both sides are carrying out a formal assessment to determine whether additional security measures and funding may be required. He emphasized that Pakistan, as the host country, remains responsible for ensuring the security of the project site.
According to Lak, international lenders involved in the project have already reviewed the existing security framework and expressed confidence in current arrangements during recent discussions in Canada. He added that additional financiers have also shown interest in participating in the project.
Petroleum Minister Ali Pervaiz Malik said Barrick Executive Chairman John L. Thornton recently led a high-level delegation to Islamabad to discuss security requirements and procurement strategies with government officials. He noted that Barrick’s continued commitment to the project reflects confidence in its long-term prospects despite global and regional challenges.
The discussions also covered the procurement of heavy-duty mining equipment through competitive bidding and the possible expansion of financing and credit facilities for the project.
Separately, the petroleum minister hinted at potential relief for domestic gas consumers in the upcoming gas tariff review effective from July 1. While not providing specific details, he said consumers could expect “good news” regarding gas prices.
The minister also disclosed that the government has decided to charge around Rs. 2,000 per mmBtu for gas supplied to power generation, compared with approximately Rs. 3,500 per mmBtu for imported LNG. A summary to formalize the pricing mechanism is expected to be submitted to the federal cabinet.
Officials further stated that local gas production has been increased by around 400 million cubic feet per day to help manage supply disruptions, while proposals have been prepared to address circular debt in the gas sector. The Petroleum Division also expressed optimism that ongoing discussions with the IMF could result in support for incentives aimed at helping local oil refineries undertake long-awaited modernization projects.