ISLAMABAD: Finland-based industrial giant Metso is interested in providing modern mining technology and training to the local workforce for the Reko Diq copper and gold mine project, Pakistan’s railways ministry said in a press release on Tuesday.
The Reko Diq mine, located in Pakistan’s largest and poorest southwestern Balochistan province, is among the world’s biggest untapped deposits of copper and gold, with the project estimated to generate $90 billion over the next 37 years. The project, long stalled by legal disputes and political wrangling, was revived after a 2022 settlement with Canada’s Barrick Gold. Islamabad has since touted the mine as a potential driver of growth and foreign exchange earnings.
Pakistan’s Minister of State for Finance and Railways Bilal Azhar Kayani met the president of Metso’s Minerals division, Pia Karhu, in Islamabad to discuss investment opportunities in Pakistan’s minerals sector, the railways ministry said.
“Ms. Karhu stated that Metso would provide modern mining technology and equipment, and would also offer training to the local workforce,” the railways ministry said. “She shared the company’s future plans, stating that Metso intends to participate in the Reko Diq project by providing mining technology and services.”
Metso describes itself as a “frontrunner” in sustainable technologies, end-to-end solutions and services for the aggregates, minerals processing and metals refining industries globally.
Kayani informed the Metso official about the country’s plans to upgrade its ML-1 and ML-3 railway lines to support the Reko Diq project’s “timely completion,” the statement said. The ML-1 is a long-delayed railway modernization project — a planned multi-billion-dollar upgrade of Pakistan’s 150-year-old main railway line from Karachi in the south to Peshawar near the Afghan border.
Meanwhile, the ML-3 will be a new railway line for the copper and gold mine project from Balochistan’s Chaman city to Rohri in Sindh.
Kayani mentioned that the Reko Diq project is expected to be operational by December 2028.
“He welcomed Metso’s potential involvement in Pakistan’s economic development,” the press release said.
The railways ministry said both parties agreed to hold a follow-up meeting with technical experts from Pakistan’s Ministry of Railways to explore further investment and cooperation opportunities.
While Pakistan expects the project to provide a breakthrough fir its mining sector and overall economic development, Reko Diq’s location underscores the security and political challenges that have long dogged investment in southwestern Pakistan.
Balochistan, which borders Iran and Afghanistan, has for decades faced a separatist insurgency. Armed groups have repeatedly attacked government facilities, the military, and infrastructure tied to foreign investment, including Chinese projects under the multi-billion-dollar China-Pakistan Economic Corridor.
Insurgents say they are fighting for greater control over the province’s resources and for independence, while the state has described such attacks as “terrorism” threatening national stability.
Canada’s Barrick Gold company owns a 50 percent stake in the Reko Diq mine and the Pakistan and Balochistan governments own the other 50 percent. The project is expected to start production by the end of 2028 and will produce 200,000 tons of copper per year in its first phase, with an estimated cost of $5.5 billion.
