The mine’s operator is denying a report by the Financial Times that the project could be forced to shut down within a month
The hills near the proposed site of the Reko Diq copper mine in Pakistan’s Balochistan province are seen in this undated 2010 photo— REUTERS
The federal government said on Wednesday it was tightening security around the Saindak copper and gold mine in Balochistan after terrorist violence disrupted supply routes and the mine’s operator denied a report that the project could be forced to shut down.
Saindak Metals Limited Managing Director Raziq Sanjrani called the closing report, first published by Financial Timesfactually incorrect. The mine has been operating without interruption for 25 years and “there is no possibility of its closure”, he said in a statement.
He said the company had asked the authorities for help in moving fuel oil to the site after some transporters tried to use certain routes through Balochistan and that the security agencies had since assured the company that the supply would continue uninterrupted.
Interior Minister Talal Chaudhry said the government had received the mine operator’s security concerns in early July and ordered agencies to increase deployment around its installations, personnel and cargo.
“We have directed the provincial authorities and all concerned security agencies to increase the deployment of all their installations, personnel, logistics and transport,” Chaudhry told Reuters.
“It is our priority to protect all projects run by international companies in Pakistan,” he said, adding that logistics and freight shipments to the site would receive additional security protection.
Balochistan, which borders Iran and Afghanistan, hosts several major Chinese-backed projects, including the deep-water port of Gwadar.
The Financial Times reported earlier today that Saindak’s CEO had warned the Ministry of Energy that operations could become unsustainable within a month as worsening security conditions disrupted supply routes.
The Saindak mine is operated by the state-owned Metallurgical Corporation of China under a lease that extends through 2022, and exports most of its output to China.
China’s foreign ministry said it was unaware 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 clouded the outlook for Barrick Mining’s $9 billion Reko Diq gold and copper project, about 50 kilometers from Saindak.
