Mine operator denies Financial Times report that project could be forced to shut down within a month
Hills near the proposed Reko Diq copper mine site in Pakistan’s Balochistan province are seen in this undated 2010 photo — REUTERS
The federal government said on Wednesday it was beefing up security around the Saindak copper and gold mine in Balochistan after terrorist violence disrupted supply routes, and the mine operator denied reports the project could be forced to close.
Managing Director of Saindak Metals Limited, Raziq Sanjrani, described the report as closing, first published by the Financial Timesfactually incorrect. The mine has been operating continuously for 25 years and “there is no possibility of closure,” he said in a statement.
He said the company had asked authorities to help transport the fuel oil to the site after some transporters hesitated to use certain routes through Balochistan, and security agencies had since assured the company that supplies would continue without interruption.
Minister of State for Interior Talal Chaudhry said the government became aware of the mine operator’s security concerns in early July and ordered agencies to increase their deployment around its facilities, personnel and goods.
“We have asked the provincial authorities and all relevant security agencies to strengthen the deployment of all their facilities, personnel, logistics and transportation,” Chaudhry said. Reuters.
“Our priority is to safeguard all projects run by international companies in Pakistan,” he said, adding that logistics and shipments of goods to the site would have additional security protection.
Balochistan, which borders Iran and Afghanistan, is home to several major Chinese-backed projects, including the Gwadar deep-water port.
THE Financial times reported earlier today that Saindak’s managing director had warned the energy ministry that operations could become unsustainable within a month because deteriorating security conditions were disrupting supply routes.
The Saindak mine is operated by the State Metallurgical Corporation of China under an extended lease 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 its close partner Pakistan to protect Chinese citizens, projects and institutions in the country.
The unrest in Balochistan has also dimmed the prospects for Barrick Mining’s $9 billion Reko Diq gold and copper project, about 50 kilometers from Saindak.
