New Ray of Hope for Pakistan: Massive Gold Reserves Discovered at Reko Diq Mine

NEWS CHARIOT : Pakistan, grappling with a prolonged economic crisis, has recently found a ray of hope in the form of a major gold discovery. The Pakistan Geological Survey (GSP) has reported the discovery of 32.6 metric tons of gold reserves on the banks of the Indus River, with an estimated value of around 600 billion Pakistani rupees. This significant find could provide a much-needed economic boost to the country, which has been seeking financial assistance from the International Monetary Fund (IMF) and Arab nations for some time.

This discovery is not an isolated event for Pakistan. The Reko Diq mine, located in the Balochistan province, is already known for its massive gold and copper reserves. The mine is believed to have one of the largest gold deposits in the world, with around 5.9 billion tons of ore containing 41.5 million ounces of gold and copper grading 0.41%. Experts estimate that the mine can be operational for at least 40 years, making it a long-term source of revenue.

The discovery has caught the attention of major international players. Barrick Gold, a Canadian mining company, has already entered into an agreement with the Pakistani government to begin extraction by 2028. The mine’s projected output is estimated to be 90 million tons of ore per year. This scale of operation could make the Reko Diq mine one of the world’s largest gold and copper mining projects.

Saudi Arabia has also shown interest in the Reko Diq project, engaging in talks with the Pakistani government to acquire a 15% stake. This agreement is expected to be valued at around $540 million, with Saudi Arabia’s Fund for Development contributing $150 million to support the development of the mineral resources in the Balochistan region. If finalized, Pakistan’s government will hold only a 10% stake in the project, with the remaining shares divided between Barrick Gold and the provincial government.

The discovery of these vast reserves presents a transformative opportunity for Pakistan. The Reko Diq mine, with its potential for gold and copper extraction, can play a crucial role in boosting the country’s economy, creating jobs, and attracting foreign investment. However, the ongoing talks with international companies and the need for government approval highlight the complexity of this deal.

With its rich reserves, Pakistan could soon become a key player in the global mining industry, leveraging its resources to pave the way for economic recovery.