Barrick Gold estimates 40-year life for Reko Diq mine

Islamabad (HRNW) Mark Bristow, the president and chief executive of Canadian firm Barrick Gold, has laid down his plan to develop the Reko Diq copper-gold mine in Balochistan and provided additional details on the new agreement reached between his company and the government of Pakistan.

“Offering a unique combination of large scale, low strip and good grade, Reko Diq will be a multi-generational mine, with a life of at least 40 years,” he said speaking at an investor call.

The Barrick Gold chief said that this “contemplated mine plan is based on four porphyry deposits within our land package and our exploration licence area holds additional deposits with future upside potential.”

However, the company still needs to update its 2010 feasibility study and the estimate could be revised upward. Pakistani experts believe the mine could be operated for a much longer duration.

Barrick gold plans to develop Reko Diq as a conventional open pit and milling operation producing a high-quality copper-gold concentrate.

“We are planning a two-phase construction approach, starting with an approximately 40 million tonne per annum plant, which could be doubled within five years. The staged development will optimize returns, manage upfront capital, lower execution risk and bring forward production and cash flows in the long run. If all goes according to plan, we anticipate first production in five to six years’ time,” Bristow said.

Barrick Gold will use renewable energy sources, including “solar, wind and battery configuration” to maximize its renewable power generation to achieve a range of economic and operational benefits.

Bristow confirmed that Balochistan’s share in Reko Diq mining will be funded by the project (10%) and the federal government of Pakistan (15%) and that the province will have to spend no money on the project to receive its 25% ownership. Balochistan Chief Minister Abdul Quddus Bizenjo had earlier said that he agreed to support the agreement only after ensuring that the province gets a fair share — which according to his government will increase to 33% as the province will also be collecting taxes on transactions related to the project.