Karachi: Chinese companies and major Pakistani business groups have secured mining leases for copper, gold, and other minerals in Pakistan’s southwest, marking a significant expansion of activity beyond Canada’s Barrick Mining Corporation and indicating broader sector development.
According to Pakistan International Bulk Terminal Limited, the terminal has been contracted to export minerals worth more than $5 billion in phases from the Reko Diq project in Balochistan. Additional mining ventures are emerging across the mineral-rich region. Reko Diq remains the most advanced project, with Chinese firms and large Pakistani business houses acquiring mining leases.
Last week, Reko Diq Mining Company, a subsidiary of Barrick, signed a port access agreement with Pakistan International Bulk Terminal to export copper and gold concentrate through Pakistan’s first dirty bulk cargo terminal at Port Qasim starting in 2028. Reko Diq, located in Balochistan’s Chagai district, is one of the largest undeveloped copper-gold deposits globally. Barrick holds a 50% stake in the project, with the federal and Balochistan governments each owning 25%.
The mine is expected to begin operations by 2028 or 2029, with projected exports of between 800,000 and one million tonnes of concentrate annually. Exports from the first phase are estimated at about $2.7 billion per year, rising to around $5 billion following expansion. The initial $2.7 billion would come solely from Reko Diq, with volumes expected to double in subsequent phases, significantly contributing to Pakistan’s export earnings.
Pakistan’s exports increased 4.5% to $32 billion last fiscal year but fell 7% year-on-year to $18.2 billion in the current fiscal year through January, while imports rose 9% to $40.2 billion, according to official data. A single project generating $5 billion in exports would materially improve the country’s external position.
Under its agreement with the terminal, Reko Diq Mining Company will invest $150 million to develop dedicated storage and handling facilities as part of the project’s broader $7.7 billion investment. Construction of the port-side facilities is expected to begin within two months. The terminal, which started operations in 2017, was developed with $305 million in investment, including financing from the International Finance Corporation, and is listed on the Pakistan Stock Exchange.
The terminal is also in talks with exporters of barite, rock phosphate, iron ore, and sand. Reko Diq shipments are expected to set a benchmark for future mineral exports. The terminal remains open to partnerships with Gulf investors, particularly from the United Arab Emirates.
Regarding security, cargo protection will be ensured for mineral exports despite ongoing concerns in Balochistan. The government has committed to safeguarding cargo movement, noting that any disruption would harm both the projects and broader export ambitions.