Barrick Mining has said it will not move ahead with full-scale construction of Pakistan’s massive Reko Diq copper-gold project until security conditions improve, adding further uncertainty to the timeline of one of the country’s largest planned foreign investments.
Barrick President and CEO Mark Hill provided the latest update during the Mining Forum Americas on September 29, 2026.
Hill said development of Reko Diq had already been slowed and the company was reassessing how the project should be delivered.
“We need some sort of security improvement before we would embark on a full construction schedule at Reko Diq,” Hill said.
The comments do not mean Barrick has abandoned the project or stopped every activity associated with Reko Diq.
Instead, the company is maintaining the project under active management while restricting capital spending and reviewing security, financing, project scope and the construction strategy.
The distinction is important because Barrick continues to describe Reko Diq as a valuable long-term asset.
However, its previous target of first production by the end of 2028 is now subject to considerable uncertainty.
What Has Barrick Actually Delayed?
Barrick has slowed the overall development programme rather than cancelling Reko Diq.
The company is not yet prepared to commit to the full construction schedule originally envisaged for the project.
Earlier in 2026, Barrick formally extended its comprehensive review of Reko Diq until mid-2027.
That review covers:
- Security conditions
- Capital requirements
- Project financing
- Project scope
- Development strategy
- Construction timeline
Barrick has warned that the review could result in significant changes to the project’s previously announced capital budget and schedule.
Processing Plant Construction Will Not Start in 2026
One of the clearest consequences of the slowdown concerns Reko Diq’s processing plant.
During Barrick’s second-quarter earnings call, management said the company had decided not to begin construction of the plant during 2026.
That is an important development because the processing facility represents a major component of the mine’s Phase 1 construction programme.
Barrick consequently reduced its expected attributable capital expenditure for Reko Diq during 2026.
The previous range was:
$600 million–$700 million
The revised range became:
$450 million–$500 million
This reduction reflects the slower development programme.
Reko Diq Has Not Been Cancelled
The slowdown should not be interpreted as Barrick withdrawing from Pakistan.
Barrick has repeatedly said it continues to believe in the long-term value of Reko Diq.
When the company formally announced the extended review in April, it said development activity would continue at a reduced pace and the project would remain under active management.
Barrick also approved Phase 1 development on that reduced-spending basis.
The company has additionally said it intends to continue its existing community and social programmes in Pakistan.
The situation can therefore be summarised as:
Project cancelled? — No
Barrick withdrawing? — No announcement of withdrawal
All construction stopped? — No
Development slowed? — Yes
Full construction delayed? — Yes
Security review continuing? — Yes
Previous 2028 production target guaranteed? — No
Why Is Barrick Delaying Full Construction?
Security is the central concern identified by Barrick.
Reko Diq is located in Chagai district in Balochistan, a province that has experienced militant violence and attacks against security forces, infrastructure and economic projects.
Barrick announced in February that it was reviewing all aspects of Reko Diq following an escalation in security risks and an increase in security incidents.
The company subsequently expanded the review after further deterioration in security conditions in Pakistan and the wider region.
Large mining projects create particular security challenges because construction requires thousands of workers, contractors, vehicles and equipment movements.
Equipment and supplies must also travel across long distances before reaching the remote mine site.
Protecting only the mine itself is therefore insufficient.
Security planning also needs to consider:
Employees
Contractors
Transport routes
Equipment shipments
Construction camps
Power infrastructure
Water infrastructure
and
Supply chains.
What Is Reko Diq?
Reko Diq is a giant undeveloped copper and gold deposit located in Balochistan.
It is considered one of the world’s largest undeveloped copper-gold resources.
The project is structured as a partnership between Barrick and Pakistani stakeholders.
Ownership Structure
| Shareholder | Ownership |
|---|---|
| Barrick Mining | 50% |
| Government of Balochistan | 25% |
| Pakistani state-owned enterprises | 25% |
The federal government’s 25% economic interest is held through three state-owned companies.
Barrick operates the project.
This structure means Pakistan collectively retains a 50% interest while Barrick owns the other half.
How Much Was Reko Diq Expected to Cost?
Before the security review materially altered the development strategy, Barrick estimated Phase 1 capital expenditure at approximately:
$5.6 billion to $6.0 billion
Phase 2 was estimated at:
$3.3 billion to $3.6 billion
These figures were stated on a 100% project basis and excluded capitalised financing costs.
That placed the combined development cost at approximately:
$8.9 billion to $9.6 billion
across the two phases under the previous estimates.
However, those numbers can no longer be treated as final.
Barrick has explicitly warned that the security review and slower development could result in significant increases to the previously disclosed capital budget.
Why Delays Can Make Reko Diq More Expensive
Large mining projects become more expensive when schedules stretch.
A delay can increase costs through:
Contractor expenses
Construction contractors may need to remain mobilised longer.
Equipment storage
Machinery purchased for the project may require storage and maintenance.
Inflation
Steel, cement, machinery and labour costs can increase over time.
Financing costs
Borrowing costs continue while revenue generation is delayed.
Security
Additional security measures create further operating and construction expenses.
Contract renegotiation
Existing engineering and procurement arrangements may require modification.
Logistics
Changes in construction schedules can disrupt equipment-delivery plans.
Barrick’s warning about possible capital increases therefore reflects more than the direct cost of additional security.
First Production Had Been Targeted for End-2028
Before the slowdown, Barrick planned to achieve first production from Reko Diq by the end of 2028.
That target was reaffirmed when shareholders approved the updated feasibility study and Phase 1 development in 2025.
But Barrick’s April 2026 update explicitly warned that the extended review was likely to affect the project timeline.
The company has not announced a replacement production date.
That means the end-2028 target should now be treated as the previously stated target, rather than a confirmed current completion date.
The final schedule will depend on the outcome of Barrick’s review and the security environment.
Barrick’s Review Continues Until Mid-2027
Barrick’s decision gives the company substantial time to reassess the project.
The review is expected to continue until around mid-2027.
During this period, Barrick will assess whether security conditions have improved sufficiently to justify committing substantially more capital.
This matters because moving from preliminary development into full construction would require billions of dollars in spending.
Once major contracts, equipment orders and construction programmes accelerate, reversing course becomes much more expensive.
Barrick therefore appears to be limiting its financial exposure while preserving the option to accelerate development later.
Some Work Is Still Continuing
The project has not been placed into complete care and maintenance.
Barrick has said development continues at a slower pace under active management.
Work associated with engineering, procurement, community programmes and project planning can continue even when major physical construction is deferred.
Earlier project work had included:
- Engineering
- Procurement
- Site infrastructure
- Accommodation
- Equipment acquisition
- Logistics planning
- Security planning
- Community development
However, the pace and scope of individual activities can change as the security review continues.
Security Spending Has Already Increased
Pakistan’s government has also been allocating additional resources for Reko Diq security.
In August, the Economic Coordination Committee approved approximately Rs567 million for security arrangements associated with the project.
The funding was designated for security charges payable to Headquarters Frontier Corps Balochistan (South).
The decision demonstrates the importance Pakistani authorities place on addressing the concerns surrounding the project.
But Barrick’s latest comments indicate that the company still wants to see further improvement before committing to the full construction schedule.
Why Reko Diq Matters to Pakistan
Reko Diq is far more than another mining project.
Pakistan is hoping to use the development to establish a much larger international mining industry.
The country possesses substantial mineral resources but has historically attracted relatively limited large-scale international mining investment.
A successful Reko Diq development could demonstrate that Pakistan can host multibillion-dollar mining projects involving international investors and lenders.
The project could potentially generate:
Copper exports
Gold production
Foreign exchange
Tax revenue
Royalties
Employment
Infrastructure
and
Investment in Balochistan.
That makes the project strategically important to both the federal and provincial governments.
Copper Is Becoming Increasingly Important Globally
Reko Diq’s importance is also increasing because of global copper demand.
Copper is essential for:
- Electricity grids
- Electric vehicles
- Renewable energy
- Data centres
- Electronics
- Industrial equipment
- Construction
The global expansion of artificial intelligence infrastructure is also increasing demand for electricity networks and data centres, both of which require large quantities of copper.
Developing new copper mines is difficult and can take many years.
Large undeveloped deposits such as Reko Diq therefore have strategic value.
How Much Copper Could Reko Diq Produce?
Barrick’s development plan divides Reko Diq into two major phases.
Phase 1 was designed around approximately 45 million tonnes of ore processing capacity per year.
Phase 2 would potentially double that to approximately:
90 million tonnes per year.
Barrick’s earlier projections indicated that once fully commissioned, the project could become a major producer of both copper and gold.
Phase 1 was projected to produce approximately 240,000 tonnes of copper annually on a 100% project basis.
During the first ten years of Phase 2, projected copper output could increase to approximately:
460,000 tonnes per year.
Gold would be produced alongside the copper.
These are project forecasts rather than guaranteed production figures.
Reko Diq Could Operate for Decades
Another major attraction is the deposit’s longevity.
Reko Diq is expected to operate for several decades.
The updated development plan envisaged a mine life of around 37 years, while further resource development could potentially extend operations much longer.
Long-life mines can create unusually durable economic effects.
Unlike a factory that may become obsolete relatively quickly, a major copper deposit can support employment, exports and local economic activity for generations.
That explains why both Pakistan and Barrick continue to describe Reko Diq as strategically important despite the current difficulties.
Thousands of Jobs Are Linked to Construction
The construction phase was expected to create approximately 7,500 jobs at peak activity.
Once operational, the mine was expected to support roughly 4,000 long-term positions.
The precise numbers could change if the development strategy is revised.
Still, the scale demonstrates why delays matter particularly for Balochistan.
A slower construction programme means some employment, contracting and economic activity may also arrive later than originally anticipated.
Pakistan Is Seeking International Financing
Financing remains another major component of the project.
Reko Diq requires billions of dollars before it begins generating revenue.
Pakistan and its partners have therefore sought financing from international institutions.
The financing structure has involved institutions including international development lenders and export-credit agencies.
Most recently, Finance Minister Muhammad Aurangzeb discussed Reko Diq with the U.S. Export-Import Bank during meetings in New York in September.
The government emphasised the importance of the project to Pakistan’s future exports and highlighted the economic cost of delays.
The U.S. EXIM Bank has already been involved in financing discussions surrounding Reko Diq.
Security Can Affect Financing Too
International lenders do not consider only the quality of a mineral deposit.
They also evaluate whether a project can realistically be constructed and operated.
Risks include:
Security
Political stability
Legal framework
Construction risk
Commodity prices
Infrastructure
and
Environmental performance.
If security risk increases, lenders may require additional safeguards.
Insurance can become more expensive.
Financing terms can also change.
This is one reason Barrick’s review includes both security and project financing.
The two issues are connected.
Why the Government Wants to Avoid Delays
For Pakistan, every year of delay potentially postpones future export revenue.
The country has long struggled with shortages of foreign exchange.
A large copper-export operation could eventually generate significant dollar earnings.
It could also diversify Pakistan’s exports away from their heavy dependence on textiles and other traditional sectors.
That explains why the government has repeatedly described Reko Diq as a flagship economic project.
The Government Says Barrick Remains Committed
Pakistan’s government has repeatedly emphasised Barrick’s continued commitment.
In May, Petroleum Minister Ali Pervaiz Malik met Barrick Chairman John Thornton to discuss the project.
According to the government’s account, Thornton reaffirmed Barrick’s commitment to Reko Diq.
Both sides agreed to continue coordinating on development.
That is consistent with Barrick’s own statements that it continues to believe in the project’s long-term value.
The disagreement is therefore not currently about whether Reko Diq should ultimately be developed.
The immediate question is when Barrick considers conditions suitable for full construction.
What Would Allow Full Construction to Resume?
Barrick has not published a simple security threshold that Pakistan must meet.
Hill’s latest statement referred broadly to needing “some sort of security improvement.”
In practice, the decision is likely to involve several factors.
Barrick and its partners will need confidence that:
Personnel can operate safely
Equipment can reach the site reliably
Supply routes can remain operational
Contractors are willing to work in the region
Insurance remains available
and
Lenders remain comfortable with the risk.
Improvement in only one area may therefore not immediately trigger full construction.
Could Reko Diq Still Start Production in 2028?
It is too early to say.
The original target was first production by the end of 2028.
Barrick has since warned that its extended review and slower development are likely to affect previously announced timelines.
It has also decided not to begin processing-plant construction during 2026.
No replacement production date has yet been announced.
The safest conclusion is therefore that the original end-2028 target is now at risk, but Barrick has not publicly provided a new date.
What Happens Next?
The most important milestone is the continuing Barrick review.
Investors, Pakistani authorities and lenders will be watching several developments:
- Security conditions in Balochistan
- Barrick’s assessment of security arrangements
- Revised construction strategy
- Updated capital-cost estimates
- Project financing
- Processing-plant construction
- Procurement activity
- Revised production schedule
Barrick has said it will provide another market update when appropriate.
A revised feasibility or development schedule could eventually clarify how much the slowdown has added to the project’s cost and how far first production may move.
Why the Latest Statement Matters
Barrick had already announced that it was slowing Reko Diq.
What makes Hill’s September 29 comments important is the explicit connection between security improvement and the start of full construction.
That provides a clearer condition for the next phase of development.
The company is effectively preserving the project while waiting for greater confidence in the operating environment.
For Pakistan, the challenge is therefore not simply keeping Barrick committed.
It is creating conditions under which Barrick, contractors and lenders are comfortable committing billions of dollars to full-scale construction.
The Bottom Line
Barrick Mining has slowed development of Pakistan’s Reko Diq copper-gold project and says security conditions need to improve before the company proceeds with its full construction schedule.
CEO Mark Hill made the latest comments at the Mining Forum Americas on September 29.
The development does not mean Reko Diq has been cancelled or that Barrick has withdrawn from Pakistan.
The project remains under active management, but spending has been reduced while Barrick conducts an extended review covering security, financing, capital requirements, project scope and the construction timeline.
Barrick has already decided not to begin construction of the main processing plant during 2026.
The company previously estimated Phase 1 at $5.6 billion–$6.0 billion and Phase 2 at $3.3 billion–$3.6 billion, but it has warned that both the budget and schedule could increase significantly.
First production was originally targeted for the end of 2028.
Barrick has not announced a replacement date, meaning that target should no longer be treated as certain.
For Pakistan, the stakes are substantial.
Reko Diq could become one of the country’s largest sources of mineral exports and one of the most important foreign-investment projects in Balochistan.
The project’s enormous copper reserves remain attractive.
The immediate challenge is whether the security environment can improve sufficiently for Barrick and its partners to move from reduced development activity into full-scale construction.