KARACHI – Pakistan’s largest Chinese-operated copper and gold mine issued stark warning that it could be forced to suspend operations within weeks if the worsening security situation in Balochistan continues to disrupt critical supply routes, FT reported.
In a letter to Ministry of Energy, Saindak Metals Limited warned that escalating violence and law and order challenges in Balochistan severely hampered the transportation of essential equipment and production materials to the Saindak Copper-Gold Project. The company cautioned that unless conditions improve, mining operations may become unsustainable, with a shutdown possible within a month due to shortages of key supplies and logistical support.
The warning shows growing economic cost of Balochistan’s long-running law and order situation. Saindak project accounts for the majority of Pakistan’s approximately $750 million in annual copper product exports, with almost its entire output destined for Beijing.
Company officials identified road transportation as project’s biggest vulnerability, saying travel through the mineral-rich region is increasingly dangerous because of persistent militant attacks. A person familiar with the mine’s operations, speaking on condition of anonymity, said the security crisis around major mining sites is far more severe than many policymakers in Islamabad appreciate. The source added that both the Saindak project and the nearby Reko Diq mine are operating in one of the province’s most volatile regions.
The developments pose fresh challenge to Pakistan’s efforts to transform Balochistan into a major hub for mineral extraction and export-led growth. The province is home to some of the world’s largest untapped copper and gold deposits, but repeated security threats have complicated investment and project development.
The warning also comes just months after reports that Barrick Mining delayed development of the $9 billion Reko Diq copper and gold project while reassessing regional security risks and supply chain disruptions linked to the US-Israel conflict with Iran. Located approximately 50 kilometres from Saindak, the two mining projects share key transportation corridors, leaving both exposed to the deteriorating security environment.
With insurgent violence intensifying and logistics under growing strain, concerns are mounting that continued instability in Balochistan could jeopardize not only Pakistan’s flagship mining projects but also one of the country’s most important sources of export revenue and foreign investment.
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