Ground View Pakistan: Same hall, different world

In April, a convention center in Islamabad that was initially meant for mining executives attracted international media attention when peace talks between Pakistan and Iran took place inside. The Pakistan Minerals Investment Forum (PMIF) had booked the Jinnah Convention Centre for April 8 and 9, but shortly after the event was postponed, US and Iranian delegations arrived for the first direct talks between the two countries in decades. Now, just months later, the miners are set to return to the hall, but the world has changed.

In February, the author highlighted that conferences alone do not determine the success of mining projects, emphasizing instead the importance of institutions. At that time, the question was not about the existence of mining deposits in Pakistan but whether its institutions could deliver them. However, by mid-March, the PMIF had been postponed due to the escalation of security issues in Pakistan and the broader region.

Soon after, Barrick slowed development at Reko Diq, one of the world's largest undeveloped copper-gold deposits, citing "the further escalation of security issues in Pakistan and the region."

Reko Diq, with its planned 37-year life and first-phase output of approximately 200,000 tonnes of copper annually, holds significant value for both Barrick and Pakistan. The country relies heavily on foreign exchange reserves, and Reko Diq's development could bring in substantial export earnings, royalties, and taxes. Moreover, the government of Balochistan holds a 25% stake in the project, making its success a political issue as well.

The closure of the Strait of Hormuz, which has been largely blocked since late February, has had a substantial impact on the mining sector. About half of the world's seaborne sulphur trade passes through the strait, essential for processing metals like copper, lithium, nickel, and rare earths. China's curbing of sulphur exports in May has further exacerbated the situation, making acid costs, used to process metals, a significant concern for mining operations.