Reko Diq is one of the world’s largest undeveloped copper-gold deposits. It has the potential to solve Pakistan’s energy crisis by making the country self-sufficient in natural gas and boost the economy by generating revenue. Every year, Pakistan imports up to 100,000 tonnes of copper, while the same metal mined at Saindak is sent to China, where it is smelted and refined into a finished product for sale on the open market. Saindak Metals Limited (SML), a public sector entity, launched the Saindak Copper-Gold Project in 1992.. A preliminary agreement reached earlier this year between the government of Pakistan, the Government of Balochistan, and Barrick calls for the reconstitution and restart of the project, which has been on hold since 2011. Barrick will operate it, and own up to 50% of the shares, whereas 25% each will be owned by the Government of Balochistan and Pakistan’s state owned enterprises.

For the past two decades, the ore has been crushed and ground, and the valuable metals have been separated from the gangue via floatation, a well-established process. As the value of minerals in western porphyries alone is $500 billion, therefore, the total value of the Reko Diq asset is close to $1 trillion. With such a valuable mineral deposit discovered by Geological Survey of Pakistan (GSP) in Balochistan, Pakistan should consider itself extremely fortunate. However, feeling content with our good fortune will not suffice. A huge effort is required to bring this immense wealth to the surface. All the different metals have to be refined in appropriate plants and made available to down-line industry to enable Pakistan to bring on track, a vibrant and prosperous economy.

In 1993, the BDA (Balochistan Development Authority) and BHP (Broken Hill Propriety), a leading Australian mining company, formed the CHEJVA (Chagai Hills Exploration Joint Venture). BHP applied for an exploration licence in 1996, which was granted on a 75/25% basis (BHP, BDA respectively). After that, BHP sold a portion of its holdings to Tethyan Copper Company (TCC), which consisted of Antofagasta Minerals (37.5%) and Barrick Gold (37.5%).

TCC applied for a mining lease before their exploration licence expired in 2011, but it was denied. In 2010, the Supreme Court of Pakistan received Constitution Petition No. 68/2010. (SCP). Dr. Samar Mubarakmand presented his expert opinion, claiming involvement in several major mining projects throughout the country. TCC’s claims for the right to mine in the area were rejected by SCP under the restored Chief Justice. TCC then decided to go to ICSID (the International Centre for Settlement of Investment Disputes), which ruled in their favour. The award was approximately $ 6.2 billion, and when combined with other claims, the total penalty for breach of contract was approximately $ 11 billion. Recently in December,2022 The Supreme Court (SC) on Friday declared an agreement signed between the Pakistan government and two international firms Antofagasta PLC and Barrick Gold Corporation  in March for the revival of the long-stalled Reko Diq mining project as legal

The extraction of copper from the soil at Reko Diq involves several steps (Mound of Sand in Balochi Language). Mining is the first step, followed by ore concentration and smelting to produce impure metal, which is then refined to produce high purity (99.9% or higher) product. A commercial entity makes an investment in order to generate wealth. Maximum value addition, according to TCC, occurs with the first step of producing the ‘Concentrate,’ which was then to be transferred through a pipeline (682 KM) to Gawadar and shipped for further processing by expert facilities not available in Pakistan.

According to the updated feasibility study, Reko Diq will be a conventional open pit and milling operation that will produce a high-quality copper-gold concentrate.Our mineral rich assets must be safeguarded and utilised to meet our national needs. Regrettably, we have not been able to fully realise our potential in this critical area. Our deposits remain untapped while we continue to import steel and copper. It is an example of the “blind leading the blind,” which must be stopped.Reko Diq will be a multi-generational mine with a life of at least 40 years due to its unique combination of large scale, low strip, and good grade.

It is claimed that the project would initially create an expected 7,000 jobs in Balochistan and 4,000 jobs in the long run. He also stated that Barrack Gold would construct an underground pipeline from Reko Diq to the Balochistan port, as well as road and community development projects in the province. The US$ 9 billion Reko Diq Deal is the biggest-ever investment in Pakistan’s history. The country is going to get 50 percent profit of the total project by investing accordingly. Out of Pakistan’s 50 percent share, there are further classifications. The government of Pakistan is not a direct investor, as the state-owned enterprises including OGDCL, Pakistan Petroleum Company, and Government Private Holding Company Limited are investing in the project. Balochistan will receive half of the profit of Pakistan’s share.

The development of Reko Diq will make Balochistan one of the largest recipients of foreign direct investment in Pakistan. It will create a stronger power, transport and communications corridor between Reko Diq and the Port of Gwadar. Direct development benefits for local communities in the area surrounding the mine, and Balochistan province: Following closing, immediate investment in social development to benefit the community and province, Food security, Water access and potable water, Medical care, Housing,Power, Education, Internet and telecommunications access.

Development of Reko Diq to be a catalyst to unlock economic development of the region and provide significant benefits to Balochistan, including upfront social development spend, job creation and skills development, and local investment opportunities.Reko Diq is strategically positioned to meet the demand for metal requirements in Asia with a high quality and clean concentrate.Reko Diq and wider region offer untapped greenfields and brownfields exploration potential. Reko Diq will be a major contributor to Pakistan’s economy which is expected to have a transformative impact on the underdeveloped Balochistan province where, in addition to the economic benefits it will generate, the mine will also create jobs, promote the growth of a regional economy and invest in development.