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ISLAMABAD: Pakistan and Barrick Mining Corporation are working on upgrading the security requirements of the multi-billion dollar Reko Diq Copper-Gold Project in view of the prevailing situation, resulting in increased security costs.
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.
He told journalists that the Reko Diq project agreement had provisions for security arrangements and that the partners were discussing possible upgrades.
He said both sides were conducting a formal review of security arrangements and procurement plans for the project.
Lak added that the review, as required under the agreement, would suggest whether security upgrades and additional funding were needed, while stressing that Pakistan, as the host country, bore sole responsibility for protecting the site.
He said lenders had expressed confidence in existing security protocols during a recent meeting in Canada, having completed their own due diligence before committing funds.
New financiers are also showing strong interest in joining the venture, he added.
Petroleum Minister Ali Pervaiz Malik said Barrick Executive Chairman John L. Thornton had recently led a high-level delegation to Islamabad to discuss the security situation and procurement strategy with the government.
He said it was reassuring that Barrick, one of the world’s leading mining firms, remained committed to the project despite global and local challenges.
The delegation also reportedly explored the acquisition of advanced heavy-duty equipment through competitive bidding and the expansion of the project’s lending and credit structures.
