Pakistan and Barrick Advance Security Upgrades for Reko Diq Copper-Gold Project Amid Strategic Review]

Pakistan and Barrick Advance Security Upgrades for Reko Diq Copper-Gold Project Amid Strategic Review]

Pakistan and Barrick Mining Corporation are enhancing security measures for the multi-billion dollar Reko Diq Copper-Gold Project following a comprehensive review of procurement plans, resulting in increased security expenditures.

A team of Barrick Gold is currently in Pakistan to discuss security upgrades, confirmed Ahmad Hayat Lak, chief executive officer of the Oil and Gas Development Company Limited (OGDCL), one of the key Reko Diq partners.

Lak told journalists that the Reko Diq project agreement includes provisions for security arrangements, and partners are evaluating potential upgrades. Both sides are conducting a formal review of security protocols and procurement plans for the project.

The review, mandated under the agreement, will determine whether security enhancements and additional funding are required, while emphasizing that Pakistan, as the host nation, has sole responsibility for protecting the site, he added.

Lak noted that lenders expressed confidence in existing security protocols during a recent due diligence meeting in Canada, having completed their assessment before committing funds.

New financiers are also showing strong interest in joining the venture, he said.

Petroleum Minister Ali Pervaiz Malik stated that Barrick Executive Chairman John L. Thornton recently led a high-level delegation to Islamabad to discuss security arrangements and procurement strategy with Pakistani authorities.

It is encouraging that Barrick, one of the world’s leading mining firms, remains committed to the project despite global and regional challenges, Malik said.

The delegation also explored acquiring advanced heavy-duty equipment through competitive bidding and expanding the project’s lending and credit structures, he added.

Gas Tariff Relief Announced

Minister Malik hinted at potential relief in gas tariffs for domestic consumers during the upcoming pricing review effective July 1, rather than the increases sought by gas companies. “You will hear good news” on gas prices, he said.

He announced the government has decided to charge Rs2,000 per million British thermal units (mmBtu) for gas supplied to power generation, compared to Rs3,500 per mmBtu for LNG, with a formal summary to be submitted for implementation shortly.

The proposal will be forwarded to the federal cabinet to align pricing with local rates and shield consumers from higher costs, he added.

Local gas production has increased by 400 million cubic feet per day in response to supply disruptions, and proposals have been prepared to address the chronic circular debt issue in the gas sector, Malik said.

Petroleum Secretary Hamed Yaqoob Sheikh expressed optimism about receiving a positive response from the International Monetary Fund regarding concessions to facilitate the modernization of local oil refineries.

Sheikh said the minister presented a compelling case to the IMF, emphasizing that failing to modernize refineries would be detrimental to the country’s interests.

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