Mining services company Capital has signed a material mining services contract with Reko Diq Mining Pakistan, which is operated by Barrick Gold, for the Reko Diq gold and copper mining project in Pakistan.
The contract ensures operations through to December 2028 and includes a five-year extension option. It is expected to generate more than $60m (£45.68m) in annual revenue once fully operational.
Go deeper with GlobalData
The contract encompasses two primary scopes of work, with the first focusing on early civil works, laying the project’s groundwork before production begins.
Capital will utilise mining equipment formerly deployed at the Belinga iron ore mine, with a full run rate expected from the fourth quarter of 2025 (Q4 2025).
The workforce onboarding is nearly complete and operational training has started.
The contract’s second scope involves the construction and maintenance of the tailings storage facility (TSF).
Capital will utilise the majority of the fleet from the Sukari gold mine, with operations set to start at the beginning of Q4 2025 and full utilisation anticipated in the second half of 2026.
Capital executive chair Jamie Boyton said: “Reko Diq is set to be the next truly major copper operation in the world and so it is exciting for us to be bringing our services to the site at the very beginning of its development, first through drilling and now adding mining services.
“Today highlights the strategy core to Capital of focusing on adding our services at long-term contracts at world class assets. We are also thrilled to be able to redeploy the majority of our mining kit from our previous two mining contracts and continue to drive a return from this investment.”
The contract expands Capital’s service offering at Reko Diq and builds on its record since 2023 and its long-standing relationship with Pakistan since 2008.
The company will continue providing reverse circulation and diamond drilling geotechnical services for the project alongside the new contract scope.
Reko Diq, co-owned by Barrick, federal state-owned enterprises and the Government of Balochistan, is expected to become one of the world’s largest and low-cost copper-gold operations.
The project is expected to rank among the top ten global copper mines by production, with a low C1 cash cost of $0.53/lb based on Barrick’s feasibility study.
Reko Diq has an estimated mine life of approximately 37 years, and additional exploration targets have been identified that may extend the mine life.
According to Barrick Gold CEO Mark Bristow, the mine is projected to generate $74bn (C$104.8bn) in free cash flow over the next 37 years.
