Barrick Looks Into Portfolio Optimization, Sees Pakistan As 'The New Frontier'

Barrick Gold GOLD is reshaping its portfolio in 2025, looking to prioritize high-value, large-scale projects. Although this strategy reminds of its main competitor, Newmont, which prioritizes Tier 1 assets, Barrick still aims to profit from copper tailwinds, finding growth outside its core commodity.

As part of this strategy, the company is considering divesting its 50% stake in the Zaldivar copper mine in Chile, co-owned with Antofagasta. Zaldivar produced 80,000 tons of copper in 2024, but its relatively small scale and significant future investment requirements have prompted Barrick to explore potential buyers.

At the moment, Barrick's efforts focus on the Reko Diq copper and gold project in Pakistan, one of the largest undeveloped copper-gold resources globally. CEO Mark Bristow highlighted the opportunity in a recent interview for the regional media outlet Dawn.

"It couldn't be better positioned as timing goes, as quality goes. All our test work shows it is probably going to be right up there in quality of concentrate among the best copper mines in the world, "he said.

Reko Diq could generate around $74 billion in free cash flow over 37 years, with reserves extending beyond 50 years through planned expansions. The first phase of the project, involving an investment of $5.5 billion, is projected to produce 200,000 tons of copper concentrate and 250,000 ounces of gold annually starting in 2029.

A second phase, requiring an additional $3.5 billion, aims to double output to 400,000 tons of copper and 500,000 ounces of gold annually.

The project has attracted significant interest from global investors, notably Saudi Arabia's Manara Minerals, a joint venture between the state-owned mining company Ma'aden and the Public Investment Fund. Discussions between Manara and the Pakistani government are ongoing, with Saudi officials wanting to invest within the next two quarters. While Barrick is open to collaboration, the company has clarified that it will not dilute its equity in the project.

Reko Diq is strategically important due to its rich copper deposits and potential to supply critical metals for the global shift toward electrification and renewable energy.

However, operating in Balochistan presents challenges. The region is known for political instability, underdeveloped infrastructure, and security risks, which could complicate project execution and deter foreign investment.

Despite the hurdles, Bristow remains optimistic about the project.

"If we prove that we can do it, which I have no doubt that we'll definitely do, that'll attract some of the big copper players to Pakistan, and that's why I refer to it as the new frontier of mining, "he noted.

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