Balochistan receives advance payment of Rs710 m for Reko Diq project

The Canadian corporation Barrick Gold Corporation has provided an advance payment of Rs710 million to the Balochistan government for the Reko Diq Copper-Gold Project in the Reko Diq region of Balochistan on Tuesday.

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According to officials from the provincial finance department, this payment represents an advance royalty from the Canadian company.

Officials from the Mines and Minerals Development Department-Balochistan confirmed that Barrack Gold Company is engaged in the extraction of gold and copper in the Reko Diq area.

Production activities for the Reko Diq project is scheduled to commence from 2028.

Balochistan is slated to receive a 25 per cent share in the profits generated from the Reko Diq mine, according to officials.

The Reko Diq mine holds one of the world’s largest copper and gold reserves, estimated at 5.9 billion tonnes of ore. The mine is operated by Barrick Gold Corporation and a second company Antofagasta PLC. It is expected that the mine will generate thousands of jobs over its 40-year lifespan.

Despite its potential, the Reko Diq mine project has encountered legal disputes. After the Balochistan government rejected Tethyan Copper Company’s mining lease application in 2011, international arbitrations ensued. The tribunal ruled in favour of Tethyan, awarding nearly $6 billion in damages to the company, a decision that Pakistan has contested till date.

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The mine’s vast resources and portions estimated at 2.2 billion tonnes are extremely important to Pakistan’s economy as it battles with double digit inflation.

However, the project’s future hinges on resolving current legal battles it is facing.