Reko Diq mine to become operational by 2028

The Reko Diq mining project is reportedly set to become operational in 2028, with estimates expecting a generation of a staggering $74 billion in cash flows over a period of 37 years. As per credible reports, the Oil and Gas Development Company Limited has revealed that the plan aims to extract vast amounts of copper and gold which could greatly boost the economy.

The project, which has seen great interest from Canada’s Barrick Gold, will require an initial investment of $5.5 billion. As per reports, the company is a 50 percent shareholder in the project and stands to benefit immensely from extraction operations.

The CEO of the company, Mark Bristow, outlined how the $74 billion cash flow figure has been calculated considering "long-term" price conditions. According to reports, officials are attempting to establish domestic refineries which could greatly increase the value of local minerals and reduce the cash-strapped country’s dependence on foreign countries.

Saudi Arabian firm Manara Minerals will take a 15 percent stake in the project, with potential investment from the Saudi investor surging to a whopping $1 billion. According to experts, Pakistan’s mining sector is attracting more foreign investment as global companies expect to enjoy great returns from local mines.

Reports indicate that the Reko Diq mine, located in Balochistan’s Chagai district, currently holds the largest proven reserves of copper in the world. Analysts claim that Pakistan’s economy could benefit immensely as the mine is expected to produce $2.8 billion annually in export revenues. 

Furthermore, mining operations are expected to create thousands of jobs thereby significantly benefiting local businesses and residents alike. Currently, unemployment rate sits at an uneasy 9.13 percent in Balochistan.

However, unemployment rates could be revised downwards as an expansion plan is also being considered which requires pumping upwards of $3.5 billion into the project to boost annual copper and gold production levels to 400,000 tons and 500000 ounces respectively.

Reports reveal that currently, Pakistan’s mineral sector contributes a measly 3.2 percent towards the Gross Domestic Product (GDP) and accounts for just 0.1 percent of mineral exports. This could soon change with the operationalization of the Reko Diq mine as the inflow of foreign capital may allow for the mining sector to witness significant growth in the coming years.

However, terrorist activities have been on the rise in Balochistan – a province rich in minerals.  The federal government might have to expend a greater number of resources to prove to international investors that the country is still safe for business activities.