Barrick Mining (NYSE:B) is delaying progress on its major copper and gold project in Pakistan as escalating tensions in the Middle East and a worsening security situation in the region raise concerns about project stability.
The Toronto-based miner initiated a review of the Reko Diq project last month after separatist violence intensified in Pakistan’s Balochistan province, where the mine is located.
According to reports, the company informed its Pakistani equity partners and the project’s local operator this week that development activities will be scaled back for a 12-month period beginning in July, with spending on the project reduced accordingly.
Barrick said the move follows preliminary conclusions from its internal review and comes amid a broader escalation in security risks in both Pakistan and the Middle East. The company indicated that additional time is needed to evaluate potential impacts and determine the most appropriate path for project delivery.
The slower development timeline is expected to affect previously announced budgets and project schedules, according to correspondence cited by the Financial Times.
Barrick declined to comment further on the situation.