DESPITE its hydra-headed challenges, Balochistan remains at the forefront of Pakistan`s mineral push; the multibillion-dollar copper and gold project at Reko Diq remains active and on track. Both domestic and international stakeholders maintain that the mine will achieve commercial production in 2028 as scheduled.

Relevant officials and executives declined to comment on the record regarding concerns over the project’s progress, citing the sensitive security environment in Balochistan, the complexity of the ownership structure and financial arrangement and the extensive procedural clearances required before taking a public position.

However, given the projects development, and its potential signalling effect for foreign investors, they agreed to discuss the issues privately.

The mine operator, Canadian major Barrick Gold, which holds a 50 per cent stake in the Reko Diq Mining Company (RDMC), responded promptly through its global advisory firm, Brunswick Group. It was asked to clarify the status of its ongoing project review, the possibility of inducting new partners alongside the federal and the provincial governments, and progress on securing a $1.3 billion US EXIM Bank loan.

‘The project’s future is inseparable from that of the province and its people; rather than dismissing them, the state must engage them meaningfully’

Without addressing the queries individually, the company issued a brief, generic statement attributed to its spokesperson: As we stated in our public documents, Barrick is undertaking a review of all aspects of the Reko Diq project, including with respect to the projectWe have nothing further to add.

Responding to global media reports on the review of Barrick`s mining project in Balochistan, an insider downplayed speculation, describing it as a routine disclosure requirement. As a listed Canadian company, Barrick Gold is legally obliged to periodically review and report on its operations under Canadian securities regulations.

This is public information, regularly updated on the company’s website, to keep investors informed, he said.

He stressed that such reviews are standard corporate practice, essential for maintaining investor confidence and ensuring compliance with legal and regulatory frameworks.

Transparency allows for accurate risk assessment, reduces informa-tion asymmetry, deters corruption, and attracts capital by demonstrating financial discipline and accountability to stakeholders,` he added.

On the question of inducting new ownership partners, most official and private sector experts consider it unlikely, though not entirely impossible.

It’s a highly challenging preposition despite reported interest from multiple countries and companies, said one senior officer. The ownership structure is already complex, and any alteration could unsettle the delicate balance among stakeholders, potentially jeopardising the projects future. Past attempts to restructure or broaden the shareholding did not materialise. I dont see it happening, at least not in the near future.

As for the reported $1.3bn US loan for the mineral project, a source from the company source clarified that the facility was approved in December 2025 and has only recently been reiterated publicly.

For a project of this scale, capitalraising is a continuous process, the source said. However, it is important to note that the pace of operational progress is not contingent on the availability of external financing.

Private mining circles tracking activity at the site, along with officials in Islamabad and Quetta, remain broadly optimistic about the project.

However, they acknowledge concerns over rising political alienation among segments of the local population and a fragile security environment in Balochistan.

The RDMC deserves credit for making the best of a difficult situation, said a mining executive operating in the vicinity, referring to ongoing developments.

The company has previously stated that it prioritises local procurement wherever possible. Construction materials and even drinking mineral water are sourced from within the province. Rather than engaging large bottlers outside the area, the RDMC procures water from a local company to support Balochistans economy,` a company source explained.

Employment figures reflect a similar approach. Around 70pc of hiring is reportedly from Balochistan, with preference given to youths from communities closest to the mine site, another source added, underscoring the project`s intended local impact.

Several Pakistani mining firms initially expressed strong interest in joining the project. However, enthusiasm faded as the estimated cost nearly doubled, from $4bn to $7bn, pushing the price of a meaningful equity stake beyond their financial reach.

Addressing concerns raised in some legal circles about the government`s ability to secure tangible benefits for local communities, a private mining expert struck a cautiously pragmatic note.

The agreement may not be perfect, but if it is executed as negotiated, it could significantly boost investor confidence and open the door to substantial foreign investment in Pakistan, he said. If the project proceeds smoothly, I would expect strong interest from international mining companies.

However, he expressed regret that private Pakistani mining firms were not able to secure a stake in the Reko Diq venture.

An analyst in Quetta, however, was less sanguine, urging the government to heed influential political voices it may currently be underestimating. You cant wish dissent away, he cautioned. Several Baloch leaders outside the government openly oppose the project, viewing it as an encroachment on their rights. Rather than dismissing them, the state must engage with them meaningfully. The projects future is inseparable from that of the province and its people.

Published in Dawn, The Business and Finance Weekly, February 16th, 2026

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