Barrick Provides an Update on Reko Diq
Security Crisis in Pakistan Forces Barrick to Halt Reko Diq Momentum as Capital Costs Loom
The most recent news release (April 2, 2026) announces a significant strategic pivot: Barrick is slowing development at its flagship Reko Diq copper-gold project in Pakistan. A comprehensive review, initially triggered in February 2026 due to escalating security risks, has been extended through mid-2027. While Phase 1 remains approved, the company is reducing capital spend and warns that total capital budgets for Phase 1 ($5.6–$6.0bn) and Phase 2 ($3.3–$3.6bn) are likely to increase significantly. The first production target of end-2028 is now officially "subject to revised timelines," signaling a high probability of delay.
This is a Material - Negative development. Reko Diq is central to Barrick’s long-term strategy to diversify into copper and achieve 30% production growth by 2030. - Strategic Setback: The extension of the review to mid-2027 creates a 15-month vacuum of certainty for a project that was supposed to be in "construction ramp-up" as of late 2025. - Financial Risk: The admission that capital costs will "increase significantly" from an already massive $9bn+ total budget suggests inflationary and security-related premiums that could erode project NPV. - Financing Hurdles: The Q4 2025 transcript revealed that closing the $3 billion limited-recourse project financing is contingent on completing this security review. A delay in financing directly stalls the construction start originally slated for 2025. - Operational Contradiction: This news directly contradicts the "momentum" and "on track" messaging from the Q2 and Q3 2025 updates, suggesting a rapid deterioration of the local security environment that management cannot currently mitigate.
Barrick Mining Corp. (formerly Barrick Gold) is a leading global miner focused on Tier-One gold and copper assets. - Flagship Project (Gold): Nevada Gold Mines (NGM), a JV with Newmont, and Pueblo Viejo (PV) in the Dominican Republic. - Flagship Project (Copper/Growth): Reko Diq (Pakistan), one of the world's largest undeveloped copper-gold porphyry deposits, and the Lumwana Super Pit expansion in Zambia. - Strategic Shift: The company recently rebranded to "Barrick Mining" to reflect its increasing reliance on copper to drive future value.