Pakistan and Canada are exploring deeper cooperation in the minerals and energy sectors as Islamabad steps up efforts to revive long-delayed mining projects, including the Reko Diq copper-gold mine, one of the world’s largest undeveloped mineral deposits, according to a statement issued by Pakistan’s Information Ministry this week.
The Reko Diq project, located in Balochistan’s Chagai district, holds an estimated 5.9 billion tons of ore containing copper and gold. The project remained stalled for more than a decade due to international legal disputes before being restructured in 2022. Under the revived framework, Canadian mining major Barrick Gold holds a 50% stake, alongside Pakistani federal and provincial partners.
Momentum toward implementation has accelerated with multilateral financing arrangements involving international banks and institutions, as well as large equipment contracts, including a $440 million agreement with Japan’s Komatsu for mining machinery.
These developments signal readiness for construction activities expected to begin in 2026. Last month, Washington approved $1.25 billion in financing from the U.S. Export-Import Bank for the project, a package also expected to unlock up to $2 billion in U.S. equipment and service exports.
First production is targeted for late 2028, with projected annual output of about 200,000 tons of copper and significant gold volumes once operations scale up.
The project is central to Pakistan’s strategy to position mining as a pillar of economic recovery, as the government hosts international mineral investment forums, pursues partnerships with Western and Gulf countries, and signs cooperation agreements on critical minerals, including with the United States.
Officials view large-scale mining as a potential driver of exports, foreign exchange earnings, and employment in an economy facing debt pressures and sluggish growth.
Against this backdrop, Federal Minister for Petroleum Ali Pervaiz Malik met Canada’s High Commissioner to Pakistan, Tarik Ali Khan, on Wednesday to discuss expanding bilateral cooperation in mining and energy, the ministry said.
“The success of Barrick Gold at Reko Diq is a strong example to build upon Pakistan–Canada mineral cooperation,” the high commissioner said, adding that Canada is encouraging more Canadian companies to engage with Pakistan’s mining sector.
He said Canada’s Ministry of Natural Resources is ready to support cooperation, highlighting Canadian expertise in large-scale mining, environmental standards, and community development as Pakistan opens up its mineral sector. He also noted that Canada is promoting participation in the Pakistan Minerals Investment Forum to attract global investors.
The envoy invited Pakistan to participate in the Prospectors and Developers Association of Canada convention in 2026, one of the world’s largest mining investment events, describing it as an opportunity to showcase Pakistan’s mineral potential to international investors.
Minister Malik welcomed Canada’s interest, saying that technical expertise and intellectual capital would help strengthen Pakistan’s systems and boost investor confidence, particularly among international mining companies. Both sides also discussed cooperation in the energy sector, with Canada offering technical assistance, according to the statement.
POLICY & LAW | EU Suspends GSP Benefits, Raising Tariffs on Indian Exports
