New Delhi, July 16 (IANS) Pakistan’s largest operating copper and gold mine is facing the threat of a shutdown within a month as worsening security in the restive Balochistan province disrupts the transport of critical supplies, according to a report.

As per analysis of Mining.com, a letter sent to Pakistan’s Ministry of Energy warned that operations at the Saindak Copper-Gold Mine have been severely affected by the militant insurgency in Balochistan, raising the possibility of a production halt if the security situation does not improve.

The report said road transport — the mine’s primary supply route — has become increasingly unsafe amid a surge in attacks by separatist militants targeting security forces, infrastructure and foreign-linked projects in the province.

Responding to the concerns, Pakistan’s Minister of State for the Interior Talal Chaudhry said that provincial authorities and security agencies had been directed to strengthen security for mining installations, personnel, logistics and transportation, it added.

Located in mineral-rich Balochistan, the Saindak mine has been operated by China’s state-owned Metallurgical Corporation of China (MCC) since 2001 under a lease that runs until 2037.

While most of the mine’s copper and gold output is exported to China.

The report further highlighted that copper exports from the mine generated around $750 million in revenue for Pakistan last year.

The security concerns have also cast a shadow over Barrick Mining’s proposed $9 billion Reko Diq copper-gold project, located about 50 km from Saindak, with the company reportedly reviewing regional security risks before moving ahead.

China has invested billions of dollars in Pakistan under the Belt and Road Initiative, with several infrastructure and mining projects concentrated in Balochistan.

However, repeated attacks on Chinese nationals and assets have heightened security concerns and prompted Beijing to press Islamabad to strengthen protection for its projects.

The latest warning underscores the growing challenges facing Pakistan’s efforts to develop its vast mineral reserves, with Balochistan home to some of the world’s largest copper and gold deposits.

–IANS

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