Reko Diq, located in the Chagai district of Balochistan, is one of the world’s largest undeveloped reserves of copper and gold. Often described as a “treasure beneath the desert,” this mineral-rich deposit has the potential to reshape Pakistan’s economic future and strengthen its position in the global mining industry.
Strategic Importance of Reko Diq
Reko Diq lies in Pakistan’s resource-rich Balochistan province, bordering Afghanistan and Iran. The site covers an area of nearly 13,000 square kilometers and is believed to contain over 12 million tons of copper and 20 million ounces of gold. Such vast reserves make Reko Diq a globally significant project, comparable to some of the largest copper-gold mines in the world.
Economic Potential
The development of Reko Diq could generate billions of dollars in foreign direct investment (FDI) and create thousands of jobs in the mining, logistics, and service industries. Experts suggest that once fully operational, the project could contribute substantially to Pakistan’s GDP and exports, easing the country’s balance-of-payments challenges.
Additionally, revenue from royalties and taxes would provide a much-needed boost to both the federal and provincial governments. For Balochistan, Pakistan’s least developed province, the project represents a golden opportunity for socioeconomic transformation through infrastructure development, education, and healthcare facilities.
Recent Developments
After years of legal disputes, Pakistan reached a landmark agreement in 2022 with Barrick Gold Corporation, one of the world’s largest mining companies, to revive the stalled Reko Diq project. Under the new arrangement:
Barrick Gold holds a 50% share in the project.
Pakistan’s federal and Balochistan governments collectively own the remaining 50%, ensuring local participation.
The project is structured to prioritize sustainable mining practices and community development initiatives.
Construction and development phases are expected to span over a decade, with the first production anticipated in the early 2030s.
Regional and Global Implications
Reko Diq is not just an economic project — it also holds geopolitical significance. Situated in a strategic region, the mine can attract global investors and strengthen Pakistan’s trade relations. With the growing demand for copper in clean energy technologies such as electric vehicles, solar power, and wind turbines, Pakistan is well-positioned to benefit from the global green energy transition.
Challenges Ahead
Despite its enormous promise, Reko Diq faces challenges, including:
- Ensuring transparent governance and fair revenue sharing.
- Overcoming security and infrastructure bottlenecks in Balochistan.
- Addressing environmental concerns linked to large-scale mining operations.
How Pakistan manages these issues will determine whether Reko Diq becomes a success story or another missed opportunity.
Conclusion
Reko Diq is more than a mining project — it is a test of Pakistan’s ability to harness its natural wealth for national progress. With effective management, international partnerships, and a focus on sustainable development, Reko Diq can transform Pakistan’s economic landscape and uplift Balochistan, bringing prosperity to millions.