2nd Apr 2025 16:00
(Alliance News) - Capital Ltd on Wednesday said it has signed a contract with Reko Diq Mining Pakistan Ltd for the Reko Diq project.
The agreement between London-based Capital and Reko Diq Mining, which is operated by Barrick Gold Corp, involves operations extending to December 2028, and Capital predicts that over USD60 million will be generated in annual revenue once fully operational.
A provision for a five-year contract extension after 2028 has also been agreed.
Executive Chair of Capital 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."
The Reko Diq project, according to Capital, is set to be one of the world's largest, longest life and lowest cost copper gold operations.
According to a feasibility study by Barrick, the project will be in the top 10 copper mines globally by production with a C1 cash cost of USD0.53/Ib, being amongst the lowest-cost operations in the world.
The project is 50% owned by Barrick, 25% by three federal state-owned enterprises and 25% by the government of Balochistan.
There is also a compelling long-term outlook for this project, with an estimated life of mine with circa 37 years, according to Capital.
One of the two major stages of the contract includes early works civils, meaning that mining equipment previously at Belinga will be leveraged. Therefore, Capital have said they will hit the full run rate for Q4 this year.
The equipment is already on-site, and commissioning is underway. Onboarding of the workforce is also almost complete, and operational training has commenced.
The second stage involves the ongoing construction and maintenance of the tailing storage facility. Capital has said that their team will start operations at the start of Q4 2025, reaching full utilisation in the second half of 2026.
Capital added that with this contract, they will aim to continue to deliver reverse circulation and diamond drilling geotechnical services.
Capital shares rose by 1.6% to 63.00 pence in London on Wednesday afternoon.
By Olivia Mason-Myhill, Alliance News reporter
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