The mining company Barrick has announced a deliberate slowdown of work at the Reko Diq copper project following a reassessment of regional safety conditions. In an update issued on April 2, the firm said it would continue a comprehensive review of the project and keep development activity at a reduced pace while it evaluates security, capital requirements, project scope and financing. The decision follows an earlier disclosure on February 5, 2026 that the company was reassessing all aspects of the asset.
The asset is an equal partnership with Pakistani authorities and is estimated to contain roughly 15 million tons of copper reserves. Barrick had previously targeted first production by the end of 2028 and published long-term forecasts that included more than US$70 billion in free cash flow and around US$90 billion in operating cash flow over a projected 37-year life. With the renewed safety concerns, the company now expects the overall capital budget and timeline to increase substantially.
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What Barrick is changing
Barrick says it will slow development work and continue its review through mid-2027, keeping the project under active management while cutting near-term spending. The decision preserves the approved development of Phase 1 but with a lower capital commitment. Previously disclosed estimates placed the initial capital cost of Phase 1 between US$5.6 billion and US$6.0 billion, with Phase 2 requiring an additional US$3.3 billion to US$3.6 billion. The company has warned that material increases to both budget and schedule are possible as the review progresses.
Community and partnership commitments
Despite the slowdown, Barrick emphasized its intent to maintain local programs and relationships, noting the operator role and social obligations in the host province. The company stated it will continue to invest in in-country community and social initiatives while consulting joint venture partners on security and operational decisions. Barrick also signaled it will provide a further market update once the review concludes or the situation materially changes.
Commodity market backdrop
The Reko Diq update arrives amid heightened geopolitics in the Gulf that have already affected energy and metals markets. A blockade of the Strait of Hormuz and related regional tensions have pushed energy prices higher and introduced risks of slower global growth, which in turn can compress demand for industrial metals. Traders and producers are watching whether disruptions persist, because prolonged flow interruptions could steepen downside pressure on base metals.
Copper and gold reaction
Analysts at Goldman Sachs cautioned that near-term copper risks are skewed lower if Strait flows remain constrained, given the knock-on effect of elevated energy prices on global growth. Still, physical demand supported recent gains: on April 7 benchmark three-month copper on the London Metal Exchange (LME) rose about 0.55 percent to US$12,428 a metric ton, while the most-active contract on the Shanghai Futures Exchange (SHFE) closed higher at 96,560 yuan (around US$14,049.38) a ton.
Gold also firmed, reversing a short dip with bullion climbing as much as 1 percent on April 7. A softer US dollar and central bank buying provided support: the People’s Bank of China (PBOC) added roughly 160,000 troy ounces (about five tons) in March, marking its largest monthly increase in more than a year and extending an accumulation trend that began in November 2026. In February the PBOC bought 30,000 troy ounces, with reported holdings then at about 74.22 million fine troy ounces.
Implications and next steps
The pause at Reko Diq underscores how geopolitical risk can ripple through long-term development projects and global commodity markets. For Barrick, the immediate priorities are to reassess the security environment, refine capital needs, and confirm project financing while minimizing disruption to local programs. For the market, the main watchpoints remain the duration of Gulf tensions, central bank buying patterns for gold, and how physical demand in hubs such as China holds up through seasonal peaks.
Investors and stakeholders should expect further detail when Barrick concludes its review, but in the meantime the company’s move highlights the link between geopolitical events and project economics: large-scale mines like Reko Diq require stable operating conditions, predictable financing and clear timelines—any of which can be materially affected by regional instability.
