Pakistan’s largest operating copper and gold mine is facing a potential shutdown amid security concerns in the country’s southwest, according to the Financial Times.
A letter to Pakistan’s energy ministry seen by FT reveals that the Saindak Mine in Balochistan has been severely affected by militant insurgency in the region, affecting transport of critical supplies.
It warns that the operation could cease within a month if the situation does not improve.
“We have directed the provincial authorities and all concerned security agencies to beef up deployment for all of their installations, personnel, logistics and transportation,” Pakistan Minister of State for the Interior Talal Chaudhry said in a follow-up statement to Reuters.
Located in Pakistan’s mineral-rich Balochistan province, Saindak has been operated by China’s state-owned Metallurgical Corporation of China (MCC) since 2001. The mine is currently under a long-term lease that extends into 2037.
The copper-gold mine is a key contributor to Pakistan’s mining sector, with most of its output exported to China.
Its copper alone generated about US$750 million ($1.07 billion) in export revenue for Pakistan last year, according to official data cited by FT.
The warning comes as separatist violence intensifies across Balochistan, where attacks on security forces, infrastructure, and foreign interests have increased in recent months.
Road transport, the mine’s primary supply route, has become increasingly dangerous, according to the letter sent to the Pakistani government.
Security concerns extend beyond Saindak. Barrick Mining’s (TSX:ABX) proposed US$9 billion Reko Diq Copper-Gold Project, located 50km away, is also facing delays as the company reviews regional security risks.
China has invested billions of dollars in Pakistan through the Belt and Road Initiative, with many of its infrastructure and mining projects concentrated in Balochistan.
However, repeated attacks by militants targeting Chinese personnel and assets have strained ties between the two countries and prompted Beijing to press Islamabad to strengthen security.
The latest warning from Saindak highlights the current challenges facing Pakistan’s ambitions to develop its vast mineral resources.
Balochistan province holds some of the world’s largest copper-gold deposits.
Write to Jackson Chen at Mining.com.au
Image: Saindak Metals Limited
