Pakistan and Barrick Mining Corporation are working together to upgrade security arrangements at the Reko Diq Copper-Gold Project in Balochistan. The review comes in response to the prevailing security situation and will result in increased security costs. A Barrick Gold team is currently in Pakistan to discuss the upgrades in detail.
OGDCL CEO Confirms Security Talks
Ahmad Hayat Lak, CEO of Oil and Gas Development Company Limited (OGDCL) and a key Reko Diq partner, confirmed the ongoing discussions. He said the project agreement already includes provisions for security arrangements. Both sides are now conducting a formal review of security arrangements and procurement plans. Lak stressed that Pakistan, as the host country, bears sole responsibility for protecting the site.
Lenders Express Confidence in Project
Lak said lenders expressed confidence in existing security protocols during a recent meeting held in Canada. Financial institutions completed their own due diligence before committing funds to the project. He added that new financiers are also showing strong interest in joining the venture.
Barrick Delegation Visits Islamabad
Petroleum Minister Ali Pervaiz Malik said Barrick Executive Chairman John L. Thornton recently led a high-level delegation to Islamabad. The delegation met with government officials to discuss the security situation and procurement strategy. It also explored the acquisition of advanced heavy-duty equipment through competitive bidding.
The delegation further discussed expanding the project’s lending and credit structures. The minister said it was reassuring that Barrick remained committed to Reko Diq despite global and local challenges.
Gas Tariff Relief Expected from July 1
Petroleum Minister Ali Pervaiz Malik hinted at relief in gas tariffs for domestic consumers in the upcoming pricing review from July 1. He told journalists to expect good news on gas prices instead of the increase demanded by gas companies.
The government has already decided to charge Rs2,000 per million British thermal units (mmBtu) for gas supplied to power generation. This replaces the earlier rate of Rs3,500 per mmBtu applied in the case of LNG. A formal summary will be moved to the federal cabinet for implementation shortly.
Local Gas Production Increased by 400 MMCFD
The minister said local gas production increased by 400 million cubic feet per day in response to supply disruptions. The government has also prepared proposals to address the chronic circular debt problem in the gas sector. Officials are working to align local gas pricing with market realities while shielding consumers from higher costs.
IMF Talks on Refinery Upgrades Progress
Petroleum Secretary Hamed Yaqoob Sheikh said the division is optimistic about receiving a positive IMF response on concessions for upgrading local oil refineries. He said the minister made a strong case before the IMF during recent discussions. Sheikh warned that failure to modernise Pakistan’s refineries would not serve the country’s long-term interest.