The mine operator denies a Financial Times report that the project could be forced to close within a month.
Hills near the proposed site of the Reko Diq copper mine in Pakistan’s Balochistan province are seen in this undated photo from 2010: REUTERS
The federal government said on Wednesday it was stepping up security around the Saindak copper and gold mine in Balochistan, after terrorist violence disrupted supply routes, and the mine’s operator denied a report that the project could be forced to close.
Saindak Metals Limited Managing Director Raziq Sanjrani termed the closure report, first published by the Financial timesobjectively incorrect. The mine has been operating without interruption for 25 years, and “there is no possibility of its closure,” he said in a statement.
He said the company had sought help from authorities to transport furnace oil to the site after some transporters refused to use certain routes through Balochistan, and that security agencies had since assured the company that supply would continue uninterrupted.
Minister of State for Home Affairs Talal Chaudhry said the government had received security concerns from the mine operator in early July and ordered agencies to increase deployment around its facilities, personnel and cargo.
“We have directed the provincial authorities and all concerned security agencies to strengthen the deployment of all their facilities, personnel, logistics and transportation,” Chaudhry said. Reuters.
“Our priority is to safeguard all projects carried out by international companies in Pakistan,” he said, adding that logistics and cargo shipments to the site would receive additional security protection.
Balochistan, which borders Iran and Afghanistan, is home to several major Chinese-backed projects, including the Gwadar deep-sea port.
He Financial times reported today that Saindak’s CEO had warned the Ministry of Energy that operations could become unsustainable within a month because deteriorating security conditions were disrupting supply routes.
The Saindak mine is operated by the state-owned China Metallurgical Corporation under a lease extended in 2022, and exports most of its production to China.
China’s Foreign Ministry said it was not aware of the situation but that Beijing would work with close partner Pakistan to protect Chinese citizens, projects and institutions in the country.
The unrest in Balochistan has also clouded the outlook for Barrick Mining’s $9 billion Reko Diq gold-copper project, about 50 kilometers from Saindak.
