Reko Diq security costs increase as upgrades discussed

• Govt and mining company conducting formal review of procurement plans for project
• Minister hints at gas tariff relief for domestic consumers from July 1

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.

‘Relief in gas tariff’

The minister hinted at relief in gas tariffs for domestic consumers in the upcoming pricing review from July 1, instead of an increase demanded by gas companies.“You will hear good news” on gas prices, he said.

He said the government had already decided to charge Rs2,000 per million British thermal units (mmBtu) for gas supplied to power generation, instead of Rs3,500 per mmBtu in the case of LNG, and that a formal summary would be moved for implementation shortly.

A summary would be sent to the federal cabinet to align the pricing of this gas with local rates and shield consumers from higher costs, he added.

The minister said local gas production had been increased by 400 million cubic feet per day in response to supply disruptions and that proposals had been prepared to address the chronic circular debt problem in the gas sector.

Petroleum Secretary Hamed Yaqoob Sheikh said the division was optimistic about receiving a positive response from the International Monetary Fund (IMF) regarding concessions aimed at facilitating the upgradation of local oil refineries.

He said the minister had made a strong case before the IMF and emphasised that failure to modernise refineries would not be in the country’s interest.

Published in Dawn, June 4th, 2026