Barrick’s Copper Ambitions Stalled by Security Review and Portfolio Reshuffle

A major security review has forced Barrick Gold, the Canadian mining giant, to halt development at its flagship Reko Diq copper project in Pakistan until at least mid-2027. This significant delay, announced on April 2, 2026, deals a substantial blow to the company’s strategic pivot toward copper production. As management navigates this setback, it is simultaneously advancing a multi-billion dollar plan to spin off its North American assets, a move complicated by legal disputes and operational challenges.

North American Spin-Off Gains Momentum Amid Operational Headwinds

In a parallel strategic shift, Barrick is actively restructuring its portfolio. The company has engaged Goldman Sachs and advisor Michael Klein to prepare a public listing for its North American mining assets. Analysts suggest this entity, which would include lucrative mines in the United States and the Dominican Republic, could carry a valuation exceeding $60 billion. The proposed separation is designed to isolate these stable, cash-generating operations from the geopolitical risks associated with regions like Pakistan and Mali.

However, this process faces its own obstacles. A legal dispute with joint-venture partner Newmont over the Fourmile project in Nevada has introduced uncertainty. Newmont has alleged that Barrick breached contractual agreements. Furthermore, newly disclosed profit-sharing arrangements benefiting Teck Resources have clouded the valuation of these assets. These corporate maneuvers unfold against a backdrop of operational strain; Barrick recently reported its sixth consecutive annual production decline, hitting its lowest output level in a quarter-century.

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Reko Diq Project Paused Indefinitely

The decision to slow work at the Reko Diq mine in Pakistan’s Balochistan province was driven by untenable security concerns. Company leadership concluded that the local situation necessitated a comprehensive project review, effectively freezing substantial development. The financial implications are expected to be severe, with Barrick anticipating significant cost overruns and timeline extensions.

Initial capital expenditure estimates, which projected up to $6.0 billion for the first phase and an additional $3.3 billion for the second, have been shelved. The project will now be managed with minimal capital investment pending the review’s conclusion. Reko Diq, with an estimated 15 million tonnes of copper reserves, was central to Barrick’s ambition of becoming a top-tier copper producer. The mine was forecast to generate over $70 billion in free cash flow throughout its 37-year lifespan. The indefinite pause raises fundamental questions about the future financing and feasibility of the venture under revised conditions.

Path Forward Hinges on Strategic Decisions

Barrick’s near-term trajectory now appears heavily dependent on the successful execution of the North American initial public offering. Until the Reko Diq project review is finalized in mid-2027, the company’s primary growth narrative in copper remains on hold. Only after this evaluation will Barrick disclose the new—and likely substantially higher—capital requirements for the Pakistan project. For now, the miner must balance portfolio transformation with navigating persistent legal and operational challenges.